 Delegation and ambiguity in correlated equilibriumSimon Grant and Ronald Stauber Games and Economic Behavior, 2022, vol. 132, issue C, 487-509 Abstract: In the context of normal-form games with complete information, we introduce a notion of correlated equilibrium that allows partial delegation to a mediator and ambiguity in the correlation device. Without ambiguity, the sets of equilibrium action distributions are equivalent to those for coarse correlated equilibrium (Moulin and Vial, 1978). With correlation devices that incorporate ambiguity, any action distribution that Pareto dominates a coarse correlated equilibrium or a correlated equilibrium (Aumann, 1974), can be approximated with an arbitrary degree of precision using the proposed equilibrium notion. These approximations are attained in one-shot, static strategic interactions, and do not require repeated play. We also analyze such equilibria when the set of feasible posteriors is exogenously constrained, which yields, as a special case, a definition and characterization of an “ambiguous correlated equilibrium” that does not require delegation to the mediator. Keywords: Correlated equilibrium; Coarse correlated equilibrium; Ambiguity; Maxmin (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:132:y:2022:i:c:p:487-509 DOI: 10.1016/j.geb.2022.01.023 Access Statistics for this article Games and Economic Behavior is currently edited by E. Kalai More articles in Games and Economic Behavior from Elsevier |
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