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Job market signaling and employer learning

  • Alós-Ferrer, Carlos
  • Prat, Julien

We consider a signaling model where the senderʼs continuation value after signaling depends on his type, for instance because the receiver is able to update his posterior belief. As a leading example, we introduce Bayesian learning in a variety of environments ranging from simple two-period to continuous-time models with stochastic production. Signaling equilibria present two major departures from those obtained in models without learning. First, new mixed-strategy equilibria involving multiple pooling are possible. Second, pooling equilibria can survive the Intuitive Criterion when learning is efficient enough.

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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 147 (2012)
Issue (Month): 5 ()
Pages: 1787-1817

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Handle: RePEc:eee:jetheo:v:147:y:2012:i:5:p:1787-1817
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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