We examine the behavior of senders and receivers in the context of oligopoly limit pricing experiments in which high prices chosen by two privately informed incumbents may signal to a potential entrant that the industry-wide costs are high and that entry is unprofitable. The results provide...

On a homogeneous oligopoly market informed sellers are fully aware of market demand whereas uninformed sellers only know the distribution. We first derive the market results when sellers are risk averse, similarly to Ponssard (1979) who assumed risk neutrality throughout. With the help of these...

Candidates compete to persuade a decision maker. The decision maker wishes toselect a candidate who possesses a certain ability. Then, as a signaling, each candidatedecides whether to perform a task whose performance statistically re‡ects the ability.However, since the cost of the performance...