Correlated equilibrium

In game theory, a correlated equilibrium is a solution concept that is more general than the well known Nash equilibrium. It was first discussed by mathematician Robert Aumann in 1974.^[1][2] The idea is that each player chooses their action according to their private observation of the value of the same public signal. A strategy assigns an action to every possible observation a player can make. If no player would want to deviate from their strategy (assuming the others also don't deviate), the distribution from which the signals are drawn is called a correlated equilibrium.