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Multiple Equilibria as a Difficulty in Understanding Correlated Distributions

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Abstract

We view achieving a particular correlated equilibrium distribution for a normal form game as an implementation problem. We show, using a parametric version of the two-person Chicken game and a wide class of correlated equilibrium distributions, that a social choice function that chooses a particular correlated equilibrium distribution from this class does not satisfy the Maskin monotonicity condition and therefore can not be fully implemented in Nash equilibrium.
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  • Anirban Kar & Indrajit Ray & Roberto Serrano, 2005. "Multiple Equilibria as a Difficulty in Understanding Correlated Distributions," Working Papers 2005-10, Brown University, Department of Economics.
    • Handle: RePEc:bro:econwp:2005-10
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    References listed on IDEAS

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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