Du, Songzi (2009): Correlated Equilibrium via Hierarchies of Beliefs.

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Abstract
We study a model of correlated equilibrium where every player takes actions based on his hierarchies of beliefs (belief on what other players will do, on what other players believe about others will do, etc.) intrinsic to the game. Our model does away with messages from outside mediator that are usually assumed in the interpretation of correlated equilibrium. We characterize in every finite, complete information game the exact sets of correlated equilibria (both subjective and objective) that can be obtained conditioning on hierarchies of beliefs; the characterizations rely on a novel iterated deletion procedure. If the procedure ends after k rounds of deletion for a correlated equilibrium obtained from hierarchies of beliefs, then players in the equilibrium need to reason to at most kth order beliefs. Further conceptual and geometric properties of the characterizations are studied.
Item Type:  MPRA Paper 

Original Title:  Correlated Equilibrium via Hierarchies of Beliefs 
Language:  English 
Keywords:  game theory; correlated equilibrium; higher order beliefs; purification; intrinsic correlation 
Subjects:  D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D80  General C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C72  Noncooperative Games 
Item ID:  16926 
Depositing User:  Songzi Du 
Date Deposited:  25 Aug 2009 08:14 
Last Modified:  30 Sep 2019 21:28 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/16926 