An example shows that there are well-behaved infinte signaling games with no sequential equilibria. We explore the relationship between equilibrium outcomes of the infinite game and those of approximating games. Consider a sequence of signaling games approaching a limit game. A "(sub)sequence of...

It is commonly argues that reducing the number of hours worked by the employed would lead to lower unemployment, since firms will respond by hiring more workers. This paper examines the relationship between hours worked and unemployment, in the context of an efficiency wage model where...

This primer rigorously introduces the auction model of "risk neutral bidders with independent private values". The model is central to auction theory, and its structure is the same as a many models used in information economics. Results are derived regarding the nature of equilibria, the effects...