Exogenous empirical-evidence equilibria in perfect-monitoring repeated games yield correlated equilibria
Type
Conference PaperAuthors
Dudebout, NicolasShamma, Jeff S.

KAUST Department
Computer, Electrical and Mathematical Sciences and Engineering (CEMSE) DivisionElectrical Engineering Program
RISC Laboratory
Date
2015-02-17Online Publication Date
2015-02-17Print Publication Date
2014-12Permanent link to this record
http://hdl.handle.net/10754/550517
Metadata
Show full item recordAbstract
This paper proves that exogenous empirical-evidence equilibria (xEEEs) in perfect-monitoring repeated games induce correlated equilibria of the associated one-shot game. An empirical-evidence equilibrium (EEE) is a solution concept for stochastic games. At equilibrium, agents' strategies are optimal with respect to models of their opponents. These models satisfy a consistency condition with respect to the actual behavior of the opponents. As such, EEEs replace the full-rationality requirement of Nash equilibria by a consistency-based bounded-rationality one. In this paper, the framework of empirical evidence is summarized, with an emphasis on perfect-monitoring repeated games. A less constraining notion of consistency is introduced. The fact that an xEEE in a perfect-monitoring repeated game induces a correlated equilibrium on the underlying one-shot game is proven. This result and the new notion of consistency are illustrated on the hawk-dove game. Finally, a method to build specific correlated equilibria from xEEEs is derived.Citation
Dudebout, N., & Shamma, J. S. (2014). Exogenous empirical-evidence equilibria in perfect-monitoring repeated games yield correlated equilibria. 53rd IEEE Conference on Decision and Control. doi:10.1109/cdc.2014.7039539Conference/Event name
2014 53rd IEEE Annual Conference on Decision and Control, CDC 2014ae974a485f413a2113503eed53cd6c53
10.1109/CDC.2014.7039539