Improving Nash by coarse correlation

A-Tier
Journal: Journal of Economic Theory
Year: 2014
Volume: 150
Issue: C
Pages: 852-865

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a class of symmetric two-person quadratic games where coarse correlated equilibria – CCE – (Moulin and Vial [16]) can strictly improve upon the Nash equilibrium payoffs, while correlated equilibrium – CE – (Aumann [3,4]) cannot, because these games are potential games with concave potential functions. We compute the largest feasible total utility in any CCE in those games and show that it is achieved by a CCE involving only two pure strategy profiles. Applications include the Cournot duopoly and the game of public good provision, where the improvement over and above the Nash equilibrium payoff can be substantial.

Technical Details

RePEc Handle
repec:eee:jetheo:v:150:y:2014:i:c:p:852-865
Journal Field
Theory
Author Count
3
Added to Database
2026-01-26