Credible deviations from signaling equilibria |
| |
Authors: | Péter Es? James Schummer |
| |
Institution: | (1) Department of Economics, University of California, San Diego, USA; |
| |
Abstract: | In games with costly signaling, some equilibria are vulnerable to deviations which could be “unambiguously” interpreted as
coming from a unique set of Sender-types. This occurs when these types are precisely the ones who gain from deviating for
any beliefs the Receiver could form over that set. We show that this idea characterizes a unique equilibrium outcome in two
classes of games. First, in monotonic signaling games, only the Riley outcome is immune to this sort of deviation. Our result
therefore provides a plausible story behind the selection made by Cho and Kreps’s (Q J Econ 102:179–221, 1987) D1 criterion
on this class of games. Second, we examine a version of Crawford and Sobel (Econometrica 50:1431–1451, 1982) model with costly signaling,
where standard refinements have no effect. We show that only a Riley-like separating equilibrium is immune to these deviations. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|