Coarse correlated equilibria in linear duopoly games

Ray, Indrajit and Sen Gupta, Sonali (2013) Coarse correlated equilibria in linear duopoly games. International Journal of Game Theory, 42 (2). pp. 541-562. ISSN 0020-7276

Abstract

For duopoly models, we analyse the concept of coarse correlated equilibrium using simple symmetric devices that the players choose to commit to in equilibrium. In a linear duopoly game, we prove that Nash-centric devices, involving sunspot structure, are simple symmetric coarse correlated equilibria. any small perturbation from such a structure fails to be an equilibrium.