A note on perfect correlated equilibria

Abstract

This note studies perfect correlated equilibrium introduced by Dhillon and Mertens (1996). We show that the standard revelation principle for perfect correlated equilibrium distributions holds in two-by-two games. We then show that in N-player two-action games, although the revelation principle fails, a canonical correlated device for any perfect correlated equilibrium distribution involves two copies of action sets as the message space.