CFDP 884R

Correlated Equilibrium with Generalized Information Structures

Author(s): 

Publication Date: August 1988

Revision Date: August 1989

Pages: 21

Abstract: 

We study the “generalized correlated equilibria” of a game when players make information processing errors. It is shown that the assumption of information processing errors is equivalent to that of “subjectivity” (i.e., differences between the players’ priors). Hence a bounded rationality justification of subjective priors is provided. We also describe the set of distributions on actions induced by generalized correlated equilibria with common priors.

Keywords: 

Correlated equilibria, Subjective priors, Bounded rationality

JEL Classification Codes:  026, 022

See CFP: 819