The Alternative to Equilibrium Existence

This paper establishes and interprets a necessary and sucient condition for existence of (countably additive) correlated equilibrium in n-person games, assuming only that utility functions are bounded, measurable. A sequence of deviation proles is consistent if there exists a correlated strategy that makes every prole in the sequence unprotable with respect to the sum of utilities. An equilibrium exists if and only if every sequence of deviation proles has a consistent subsequence. This condition fails to characterize Nash equilibrium. As a direct corollary, existence of (communication) equilibrium is characterized in games with incomplete information on type spaces large enough to include the universal one. Exact conditions for existence of approximate correlated equilibrium are also obtained, as well as a value for two-person zero-sum games.