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A Dynamic Model of Equilibrium Selection in Signaling Markets

Author

Listed:
  • Noldeke, G.
  • Samuelson, L.

Abstract

In his work on signaling, Spence proposed a dynamic model of a market in which a buyer revises prices in light of experience and in which sellers, with private information about their type, choose utility-maximizing signals given these prices. We follows Spence's suggestion of introducing perturbations into the resulting dynamic process.

Suggested Citation

  • Noldeke, G. & Samuelson, L., 1996. "A Dynamic Model of Equilibrium Selection in Signaling Markets," Working papers 9518r, Wisconsin Madison - Social Systems.
    • Handle: RePEc:att:wimass:9518r
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    References listed on IDEAS

    as
    1. In-Koo Cho & David M. Kreps, 1987. "Signaling Games and Stable Equilibria," The Quarterly Journal of Economics, Oxford University Press, vol. 102(2), pages 179-221.
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    7. Noldeka, G. & Samuelson, L., 1994. "Learning to Signal in Market," Working papers 9409, Wisconsin Madison - Social Systems.
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    More about this item

    Keywords

    GAMES; INFORMATION; GENERAL EQUILIBRIUM;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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