TRUYTS, Tom - Center for Operations Research and Econometrics (CORE), … - 2012
I develop a model of stochastic costly signaling in the presence of exogenous imperfect information, and study whether … equilibrium signaling decreases ('information substitutes') or increases ('information complements') if the accuracy of exogenous … information increases. A stochastic pure costly signaling model is shown to have a unique sequential equilibrium in which at least …