Equilibrium design in an n-player quadratic game

Dokka, Trivikram and Moulin, Hervé and Ray, Indrajit and SenGupta, Sonali (2023) Equilibrium design in an n-player quadratic game. Review of Economic Design, 27 (2). pp. 419-438. ISSN 1434-4742

Abstract

As in public good provisions, in a public bad situation such as abatement, the non-cooperative interplay of the participants typically results in low levels of quantities (provision or abatement). In a simple class of n-person quadratic games, we show how Coarse correlated equilibria, using simple mediation devices, can significantly outperform Nash equilibrium outcomes in terms of a stated policy objective.