Theory and Decision

, Volume 83, Issue 4, pp 457–468 | Cite as

Correlated equilibrium in a nutshell

Article
  • 52 Downloads

Abstract

We analyze the concept of correlated equilibrium in the framework of two-player two-strategy games. This simple framework makes it possible to clearly demonstrate the characteristic features of this concept. We develop an intuitive and easily memorizable test for equilibrium conditions and provide a complete classification of symmetric correlated equilibria in symmetric games.

Keywords

Games with communication Correlated strategies Correlated equilibrium 2 \(\times \) 2 games 

References

  1. Aumann, R. (1974). Subjectivity and correlation in randomized strategies. Journal of Mathematical Economics, 1, 67–96.CrossRefGoogle Scholar
  2. Aumann, R. (1987). Correlated equilibrium as an expression of Bayesian rationality. Econometrica, 55, 1–18.CrossRefGoogle Scholar
  3. Dhillon, A., & Mertens, J.-F. (1996). Perfect correlated equilibria. Journal of Economic Theory, 68, 279–302.CrossRefGoogle Scholar
  4. Forges, F. (1986). An approach to communication equilibria. Econometrica, 54, 1375–1385.CrossRefGoogle Scholar
  5. Forges, F. (1990). Universal mechanisms. Econometrica, 58, 1341–1364.CrossRefGoogle Scholar
  6. Harsanyi, J.C. (1967–1968). Games with incomplete information played by ’Bayesian’ players. Management Science, 14, Parts I–III, 159–182, 320–334 and 486–502.Google Scholar
  7. Hart, S., & Mas-Colell, A. (2000). A simple adaptive procedure leading to correlated equilibria. Econometrica, 68, 1127–1150.CrossRefGoogle Scholar
  8. Hart, S., & Schmeidler, D. (1989). Existence of correlated equilibria. Mathematics of Operations Research, 14, 18–25.CrossRefGoogle Scholar
  9. Myerson, R. (1991). Game theory. Cambridge: Harvard University Press.Google Scholar
  10. Papadimitriou, C., & Roughgarden, T. (2008). Computing correlated equilibria in multi-player games. Journal of the ACM, 55(3), 1–29 (article 14).Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  • Rabah Amir
    • 1
  • Sergei Belkov
    • 2
  • Igor V. Evstigneev
    • 2
  1. 1.Department of EconomicsUniversity of IowaIowa CityUSA
  2. 2.Department of EconomicsUniversity of ManchesterManchesterUK

Personalised recommendations