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Multiple equilibria as a difficulty in understanding correlated distributions

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  • Serrano, Roberto
  • Ray, Indrajit
  • Kar, Anirban

Abstract

We view achieving a particular correlated equilibrium distribution for a normal form game as an implementation problem. We show, using a parametric version of the two-person Chicken game and a wide class of correlated equilibrium distributions, that a social choice function that chooses a particular correlated equilibrium distribution from this class does not satisfy the Maskin monotonicity condition and therefore can not be fully implemented in Nash equilibrium

Suggested Citation

  • Serrano, Roberto & Ray, Indrajit & Kar, Anirban, 2005. "Multiple equilibria as a difficulty in understanding correlated distributions," UC3M Working papers. Economics we057238, Universidad Carlos III de Madrid. Departamento de Economía.
  • Handle: RePEc:cte:werepe:we057238
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    References listed on IDEAS

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    1. Aumann, Robert J, 1987. "Correlated Equilibrium as an Expression of Bayesian Rationality," Econometrica, Econometric Society, vol. 55(1), pages 1-18, January.
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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