COWLES FOUNDATION FOR RESEARCH IN
ECONOMICS Box 208281
COWLES FOUNDATION DISCUSSION PAPER NO. 1822 Correlated Equilibrium in Games with Incomplete Information Dirk Bergemann and Stephen Morris October 2011 We define a notion of correlated equilibrium for games with incomplete
information in a general setting with finite players, finite actions, and finite states,
which we call Bayes correlated equilibrium. The set of Bayes correlated equilibria of a
fixed incomplete information game equals the set of probability distributions over
actions, states and types that might arise in any Bayes Nash equilibrium where players
observed additional information. We show that more information always shrinks the set of
Bayes correlated equilibria. |
