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Signaling With Commitment

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  • Raphael Boleslavsky
  • Mehdi Shadmehr

Abstract

We study the canonical signaling game, endowing the sender with commitment power: before learning the state, sender designs a strategy, which maps the state into a probability distribution over actions. We provide a geometric characterization of the sender's attainable payoffs, described by the topological join of the graphs of the interim payoff functions associated with different sender actions. We extend the sender's commitment power to the design of a communication protocol, characterizing whether and how sender benefits from revealing information about the state, beyond what is inferred from his action. We apply our results to the design of adjudication procedures, rating or grading systems, and sequencing algorithms for online platforms.

Suggested Citation

  • Raphael Boleslavsky & Mehdi Shadmehr, 2023. "Signaling With Commitment," Papers 2305.00777, arXiv.org, revised Mar 2024.
  • Handle: RePEc:arx:papers:2305.00777
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    References listed on IDEAS

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