Extensive-Form Correlated Equilibria

Eilon Solan

The paper studies extensive-form correlated equilibria in stochastic games. An extensive-form correlated equilibrium is an equilibrium in an extended game, where a correlation device chooses at every stage, as a function of past signals (but independently of the actions of the players) a private signal for each player. We define the notion of individually rational payoffs for these games, and characterize the set of extensive-form correlated equilibrium payoffs using feasible and individually rational payoffs. Our result implies that extensive-form correlated equilibria and communication equilibria are payoff-equivalent in our model.

June, 1998
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