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Perfect correlated equilibria

Author

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  • DHILLON, A.
  • MERTENS, J.F.

Abstract

The ([ epsilon ] -) perfect correlated equilibria (P.C.E.) are those induced by a ([ epsilon ] -) perfect equilibrium of some correlation device. The "revelation principle" fails for this concept - the direct mechanism may not yield a perfect equilibrium. The approximately perfect correlated equilibria (A.P.C.E.) are the limits of [ epsilon ]-P.C.E., and we obtain a full characterisation for them. Even the A.P.C.E. are "acceptable". We argue on an example that, among those, these are the P.C.E. which seem the "right" concept.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dhillon, A. & Mertens, J.F., 1996. "Perfect correlated equilibria," LIDAM Reprints CORE 1197, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1197
    DOI: 10.1006/jeth.1996.0018
    Note: In : Journal of Economic Theory, 68 (2), 279-302, 1996
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