IDEAS home Printed from https://ideas.repec.org/p/fgv/epgewp/85.html
   My bibliography  Save this paper

Signalling and arbitrage

Author

Listed:
  • Chin-Chiu Tan, Tommy
  • Madrigal, Vicente

Abstract

Given a competitive signalling game, we study a transformed game which includes the natural enrichment of contractual opportunities in a market. We show that subgame perfect equilibrium outcomes in the new game which satisfy certa in competitive hypotheses induce sequential equilibrium outcomes in the original game which satisfy the Cho-Kreps extended intuitive criterion. Arbitrage opportunities in the transformed game achieve results similar to refinements of sequential equilibria in the original game.

Suggested Citation

  • Chin-Chiu Tan, Tommy & Madrigal, Vicente, 1986. "Signalling and arbitrage," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 85, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    • Handle: RePEc:fgv:epgewp:85
    as

    Download full text from publisher

    File URL: https://repositorio.fgv.br/bitstreams/a03dcb90-47c4-4e4b-ba0c-ce57f80a5f9c/download
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel R. Vincent, 1988. "Dynamic Auctions," Discussion Papers 770, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fgv:epgewp:85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Núcleo de Computação da FGV EPGE (email available below). General contact details of provider: https://edirc.repec.org/data/epgvfbr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.