We contrast a standard deterministic signaling game with one where the signal-generating mechanism is stochastic. With … degree of signaling depends on the prior type distribution. With deterministic signals both pooling and separating … configurations occur. Laboratory data support the theory: In the stochastic variant, there is more signaling behavior than with …

We contrast a standard deterministic signaling game with a variant where the signal-generating mechanism is subject to … separating and has intuitive comparative-static properties in that the degree of signaling is a function of the prior …