Unique Equilibrium Guarantees Robust Outcomes in Diverse Economic Scenarios
The article discusses how a Nash equilibrium in a game is strongly robust if it remains stable even when players have incomplete information about their payoffs. The researchers show that a Nash equilibrium is strongly robust if and only if it is the unique correlated equilibrium. They also explore conditions for the existence of a unique correlated equilibrium in games with many possible actions. This research establishes the presence of a strongly robust Nash equilibrium in various economic scenarios, such as contests, auctions, competitions, network games, patent races, voting problems, and location games.