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#Exogenous Empirical-evidence Equilibria in Perfect-monitoring Repeated Games Yield Correlated Equilibria Nicolas Dudebout and Jeff S. Shamma

##Abstract 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.

##BibTeX @InProceedings{dudebout_shamma:2014, author = "Dudebout, Nicolas and Shamma, Jeff S.", title = "Exogenous Empirical-evidence Equilibria in Perfect-monitoring Repeated Games Yield Correlated Equilibria", booktitle = "53rd IEEE Conference on Decision and Control", year = 2014, month = dec }

##Copyright © 2014 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.


First characterization of EEEs






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