Showing 1 - 10 of 451
Costly signaling is a mechanism through which the honesty of signals can be secured in equilibrium, even in … interactions where communicators have conflicting interests. This paper explores the dynamics of one such signaling game: Spence …
Persistent link: https://www.econbiz.de/10009754763
Many scholars turn to emotions to understand irrational behavior. We do the opposite: we turn to rationality and game theory to understand people’s emotions. We discuss a striking theory of emotions that began with the game theory of credible threats and promises, then was enriched by...
Persistent link: https://www.econbiz.de/10011708873
We consider a market for lemons in which the seller is a monopolistic price setter and the buyer receives a private noisy signal of the product’s quality. We model this as a game and analyze perfect Bayesian equilibrium prices, trading probabilities and gains of trade. In particular, we vary...
Persistent link: https://www.econbiz.de/10009752430
youngsters about social norms. We show that this signaling role provides sufficient incentives to sustain costly punishing …-based mechanisms are fragile, since punishment is a more compelling signaling device (in a sense that we make precise). …
Persistent link: https://www.econbiz.de/10012014968
We study the structure of the rest points of signaling games and their dynamic behavior under selection …-mutation dynamics by taking the case of three signals as our canonical example. Many rest points of the replicator dynamics of signaling … signaling game and show that all but the perturbed rest points close to strict Nash equilibria are dynamically unstable. This is …
Persistent link: https://www.econbiz.de/10010503400
We study an extended version of a sender-receiver signaling game-a context-signaling (CS) game that involves external … investigated CS game shows that ambiguous signaling strategies can achieve perfect information transfer and are evolutionarily … probability as non-ambiguous perfect signaling systems in multi-agent simulations under standard evolutionary dynamics. We …
Persistent link: https://www.econbiz.de/10013172391
We analyze a vertically differentiated market for an imperfectly durable good served by a monopolist in an infinite-horizon, discrete-time game. Our goal is to identify the Markov perfect stationary equilibria where the seller can maintain his monopoly power. We establish that the set of...
Persistent link: https://www.econbiz.de/10012431895
This research paper investigates a duopolistic market characterized by vertical product differentiation. The study considers both product qualities and consumer preferences represented as one-dimensional intervals. The focus is on analyzing the equilibrium in a duopoly game with convex...
Persistent link: https://www.econbiz.de/10014426354
We study a simple model in which two vertically differentiated firms compete in prices and mass advertising on an initially uninformed market. Consumers differ in their preference for quality. There is an upper bound on prices since consumers cannot spend more on the good than a fixed amount...
Persistent link: https://www.econbiz.de/10014636238
Game and decision theory start from rather strong premises. Preferences, represented by utilities, beliefs represented by probabilities, common knowledge and symmetric rationality as background assumptions are treated as “given.” A richer language enabling us to capture the process leading...
Persistent link: https://www.econbiz.de/10009751382