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Correlated Equilibria, Incomplete Information and Coalitional Deviations

Author

Listed:
  • Bloch, Francis

    (Department of Economics, University of Warwick and GREQAM)

  • Dutta, Bhaskar

    (Department of Economics, University of Warwick)

Abstract

This paper proposes new concepts of strong and coalition-proof correlated equilibria where agents form coalitions at the interim stage and share information about their recommendations in a credible way. When players deviate at the interim stage, coalition-proof correlated equilibria may fail to exist for two-player games. However, coalition- proof correlated equilibria always exist in dominance-solvable games and in games with positive externalities and binary actions.

Suggested Citation

  • Bloch, Francis & Dutta, Bhaskar, 2006. "Correlated Equilibria, Incomplete Information and Coalitional Deviations," The Warwick Economics Research Paper Series (TWERPS) 763, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:763
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    References listed on IDEAS

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    Cited by:

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    3. Heller, Yuval, 2008. "Ex-ante and ex-post strong correlated equilbrium," MPRA Paper 7717, University Library of Munich, Germany, revised 11 Mar 2008.
    4. Jobst Heitzig & Forest Simmons, 2012. "Some chance for consensus: voting methods for which consensus is an equilibrium," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(1), pages 43-57, January.

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    More about this item

    Keywords

    correlated equilibrium ; coalitions ; information sharing ; games with positive externalities;
    All these keywords.

    JEL classification:

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

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