Multiple Equilibria as a Difficulty in Understanding Correlated Distributions

12 Pages Posted: 12 Dec 2005

See all articles by Indrajit Ray

Indrajit Ray

Cardiff University - Cardiff Business School - Economics Section

Roberto Serrano

Brown University

Anirban Kar

University of Warwick

Date Written: November 2005

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.

Keywords: Correlated Equilibrium Distribution, Implementation, Monotonicity

JEL Classification: C72

Suggested Citation

Ray, Indrajit and Serrano, Roberto and Kar, Anirban, Multiple Equilibria as a Difficulty in Understanding Correlated Distributions (November 2005). Available at SSRN: https://ssrn.com/abstract=869052 or http://dx.doi.org/10.2139/ssrn.869052

Indrajit Ray

Cardiff University - Cardiff Business School - Economics Section ( email )

Cardiff CF10 3EU
United Kingdom

Roberto Serrano (Contact Author)

Brown University ( email )

64 Waterman Street
Providence, RI 02912
United States
401-863-1036 (Phone)
401-863-1970 (Fax)

Anirban Kar

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

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