We study the concept of correlated equilibrium within the framework of social situations (Greenberg 1990) and find that the unique optimistic stable standard of behavior (OSSB) of an appropriately defined correlated situation is nothing but the set of correlated equilibria. We generalize this...

We consider 2 x 2 games like Battle of the Sexes and Chicken, to test whether or not players are able to coordinate on pure Nash equilibria following recommendations from correlation devices. We use two different correlation devices, public and private, for these games, with the same expected...

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 a sunspot structure, are simple symmetric coarse correlated...

We consider three games, Symmetric Battle of the Sexes, Modified Battle of the Sexes and Chicken and two different correlation devices, public and private, with the same expected payoffs in equilibrium, which is also the best correlated equilibrium payoff for these games. Despite our choices of...

We provide necessary and sufficient conditions for observed outcomes in extensive game forms, in which preferences are unobserved, to be rationalized first, weakly, as a Nash equilibrium and then as the unique subgame-perfect equilibrium. Thus, one could use these conditions to find that play is...