Correlated Equilibrium as an Expression of Bayesian Rationality

Robert Aumann

Chapter 7 in Selected Contributions to Game Theory, 2025, pp 175-200 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Correlated equilibrium is formulated in a manner that does away with the dichotomy usually perceived between the “Bayesian” and the “game-theoretic” view of the world. From the Bayesian viewpoint, probabilities should be assignable to everything, including the prospect of a player choosing a certain strategy in a certain game. The so-called “game-theoretic” viewpoint holds that probabilities can only be assigned to events not governed by rational decision makers; for the latter, one must substitute an equilibrium (or other game-theoretic) notion. The current formulation synthesizes the two viewpoints: Correlated equilibrium is viewed as the result of Bayesian rationality; the equilibrium condition appears as a simple maximization of utility on the part of each player, given his information…

Keywords: Economics; Economic Theory; Game Theory (search for similar items in EconPapers)
JEL-codes: C7 C70 (search for similar items in EconPapers)
Date: 2025
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Related works:
Working Paper: Correlated Equilibrium as an expression of Bayesian Rationality (2010)
Working Paper: Correlated Equilibrium as an expression of Bayesian Rationality (2010)
Journal Article: Correlated Equilibrium as an Expression of Bayesian Rationality (1987)
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