Chapter 7 will show how the idea of Nash equilibrium can be extended to a strategic form game where the noncooperative strategies of players can be correlated by a mediator who picks a strategy profile (to be played in the game) randomly according to a commonly known probability distribution (over the set of all strategy profiles) and privately informs each player about the strategy recommended to play. The equilibrium of this game where each player finds it to her best interest to obey the recommendation of the mediator, under the belief that all other players will obey too, is called a correlated equilibrium. Chapter 7 will also illustrate that in some strategic form games some correlated equilibria lead to expected payoff profiles that players could not achieve by choosing their strategies independently.

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Correlated Equilibrium

  • Ismail Saglam

摘要

Chapter 7 will show how the idea of Nash equilibrium can be extended to a strategic form game where the noncooperative strategies of players can be correlated by a mediator who picks a strategy profile (to be played in the game) randomly according to a commonly known probability distribution (over the set of all strategy profiles) and privately informs each player about the strategy recommended to play. The equilibrium of this game where each player finds it to her best interest to obey the recommendation of the mediator, under the belief that all other players will obey too, is called a correlated equilibrium. Chapter 7 will also illustrate that in some strategic form games some correlated equilibria lead to expected payoff profiles that players could not achieve by choosing their strategies independently.