Correlated Equilibrium as an Expression of Bayesian Rationality
2023; World Scientific; Linguagem: Inglês
10.1142/9789811227332_0008
ISSN2251-2071
Autores Tópico(s)Economic theories and models
ResumoWorld Scientific Series in Economic TheoryInteractive Epistemology, pp. 185-210 (2024) No AccessChapter 8: Correlated Equilibrium as an Expression of Bayesian RationalityRobert J AumannRobert J Aumannhttps://doi.org/10.1142/9789811227332_0008Cited by:0 (Source: Crossref) PreviousNext AboutSectionsPDF/EPUB ToolsAdd to favoritesDownload CitationsTrack CitationsRecommend to Library ShareShare onFacebookTwitterLinked InRedditEmail Abstract: Correlated equilibrium is formulated in a manner that does away with the dichotomy usually perceived between the "Bayesian" and the "game-theoretic" view of the world. From the Bayesian viewpoint, probabilities should be assignable to everything, including the prospect of a player choosing a certain strategy in a certain game. The so-called "game-theoretic" viewpoint holds that probabilities can only be assigned to events not governed by rational decision makers; for the latter, one must substitute an equilibrium (or other game-theoretic) notion. The current formulation synthesizes the two viewpoints: Correlated equilibrium is viewed as the result of Bayesian rationality; the equilibrium condition appears as a simple maximization of utility on the part of each player, given his information. A feature of this approach is that it does not require explicit randomization on the part of the players. Each player always chooses a definite pure strategy, with no attempt to randomize; the probabilistic nature of the strategies reflects the uncertainty of other players about his choice. Examples are given. Reprinted from Econometrica (1987), 55(1), 1–18, with permission from Wiley.Research supported by the Institute for Mathematical Studies in the Social Sciences, Stanford University, under National Science Foundation Grant SES 83–20453; by the Institute for Mathematics and its Applications, University of Minnesota; and by the Mathematical Sciences Research Institute, Berkeley. We are grateful to Lloyd Shapley for an illuminating conversation, a decade back, that clarified for us the equivalence between the two definitions of correlated equilibrium; to Kenneth Arrow, for motivating us to write this paper; to Bob Weber, for the very apt quotation from Burns; and to Dave Kreps and two anonymous referees, for splendid editorial work. FiguresReferencesRelatedDetails Recommended Interactive EpistemologyMetrics History PDF download
Referência(s)