Paper #907

Title:

Existence of sparsely supported correlated equilibria

Authors:

Fabrizio Germano and Gábor Lugosi

Date:

October 2005 (Revised: April 2006)

Abstract:

We show that every finite N-player normal form game possesses a correlated equilibrium with a precise lower bound on the number of outcomes to which it assigns zero probability. In particular, the largest games with a unique fully supported correlated equilibrium are two-player games; moreover, the lower bound grows exponentially in the number of players N.

Keywords:

Correlated equilibrium, finite games

JEL codes:

C72

Area of Research:

Microeconomics / Statistics, Econometrics and Quantitative Methods

Published in:

Economic Theory (2007) 32: 575-578

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