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We study a communication game of common interest in which the sender observes one of infinite types and sends one of finite messages which is interpreted by the receiver. In equilibrium there is no full separation but types are clustered into convex categories. We give a full characterization of...
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In a recent paper, Jäger, Metzger, and Riedel (2011) study communication games of common interest when signals are simple and types complex. They characterize strict Nash equilibria as so-called Voronoi languages that consist of Voronoi tesselations of the type set and Bayesian estimators on...
Persistent link: https://www.econbiz.de/10009388067
enhance welfare. The paper offers a new theory to explain why stress tests are generally welfare enhancing. We also offer a …
Persistent link: https://www.econbiz.de/10009674818
other hand, too much competition always makes the equilibrium signaling less informative. -- Signalling ; Competition …
Persistent link: https://www.econbiz.de/10008747614
We study strategic communication between a Sender and Receiver who are both uncertain about their preferred actions. The Sender observes noisy signals about both players' ideal policies and then communicates with the Receiver. Even though Sender and Receiver disagree about ideal policies as a...
Persistent link: https://www.econbiz.de/10010482440
In signaling environments ranging from consumption to education, high quality senders often shun the standard signals that should separate them from lower quality senders. We find that allowing for additional, noisy information on sender quality permits equilibria where medium types signal to...
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