CORRELATED EQUILIBRIUM IN GAMES WITH TYPE-DEPENDENT STRATEGIES

This paper extends Aumann's definition of correlated equilibrium to games with incomplete information. A strategy correlated equilibrium is defined to be a correlated equilibrium of the game in behavioral strategies. It is shown that this equilibrium concept is robust with respect to misspecifications of the uncertainty in the game, and the equilibrium correspondence is upperhemicontinuous with respect to the players' payoff functions and information. This implies the existence of strategy correlated equilibria without assumptions on the structure of players' information. None of these results have been proven for Bayesian-Nash equilibria. © 1991.