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Correlated Perfect Equilibrium

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  • Wanying Huang
  • J. Jude Kline
  • Priscilla Man

Abstract

We propose a refinement of correlated equilibrium based on mediator errors, called correlated perfect equilibrium (CPE). In finite games, the set of CPE is nonempty and forms a finite union of convex sets. Like perfect equilibrium, a CPE never assigns positive probability to any weakly dominated strategy. We provide a dual representation of CPE and demonstrate how it differs from two existing refinements of correlated equilibrium--acceptable correlated equilibrium (Myerson, 1986) and perfect direct correlated equilibrium (Dhillon-Mertens, 1996)--through examples.

Suggested Citation

  • Wanying Huang & J. Jude Kline & Priscilla Man, 2025. "Correlated Perfect Equilibrium," Papers 2510.07906, arXiv.org.
    • Handle: RePEc:arx:papers:2510.07906
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    File URL: http://arxiv.org/pdf/2510.07906
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