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Non-Bayesian correlated equilibrium as an expression of non-Bayesian rationality

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  • Hillas, John
  • Samet, Dov

Abstract

We study new non-Bayesian solutions of games in strategic form, based on four notions of dominance: weak or strict domination by either a pure or a mixed strategy. For each of these types of dominance, d, we define a family of sets of strategy profiles, called d-correlated equilibria. We study the structure and properties of these families. A player is d-dominance rational when she does not play a strategy that is d-dominated relative to what she knows about the play of the other players. A set of profiles is a d-correlated equilibrium if and only if it is the set of profiles played in a model where d-dominance rationality is commonly known. When d denotes strict domination by a mixed strategy, a set of profiles is a d-correlated equilibrium if and only if it is the set of profiles played in a model where Bayesian rationality is commonly known.

Suggested Citation

  • Hillas, John & Samet, Dov, 2022. "Non-Bayesian correlated equilibrium as an expression of non-Bayesian rationality," Games and Economic Behavior, Elsevier, vol. 135(C), pages 1-15.
    • Handle: RePEc:eee:gamebe:v:135:y:2022:i:c:p:1-15
    DOI: 10.1016/j.geb.2022.05.005
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    References listed on IDEAS

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