We introduce the notion of exchangeable equilibria of a symmetric bimatrix game, defined as those correlated equilibria in which players’ strategy choices are conditionally independently and identically distributed given some hidden variable. The set of these equilibria is convex and lies between the symmetric Nash equilibria and the symmetric correlated equilibria. The notion of exchangeable e...

We demonstrate that multiple stationary rational-expectations equilibria exist in a version of Lucas’s island economy. The existence of these equilibria follows from the fact that there is an indeterminate set of monetary equilibria in the two-period overlappinggenerations model. We show how to construct stationary rational-expectations equilibria by randomizing over the set of nonstationary mo...