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Equilibrium Design by Coarse Correlation in Quadratic Games

Author

Listed:
  • Trivikram Dokka Venkata Satyanaraya
  • Herve Moulin
  • Indrajit Ray
  • Sonali Sen Gupta

Abstract

In a public good provision or a public bad abatement situation, the non-cooperative interplay of the participants typically results in low levels of provision or abatement. In the familiar class of n-person quadratic games, we show that Coarse Correlated equilibria (CCEs) - simple mediated communication devices that do not alter the strategic structure of the game - can significantly outperform the Nash equilibrium in terms of the policy objective above.

Suggested Citation

  • Trivikram Dokka Venkata Satyanaraya & Herve Moulin & Indrajit Ray & Sonali Sen Gupta, 2020. "Equilibrium Design by Coarse Correlation in Quadratic Games," Working Papers 301895429, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:301895429
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    References listed on IDEAS

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    More about this item

    Keywords

    Quadratic game; Coarse correlated equilibrium; Abatement level; Efficiency gain;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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