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Signaling Without Common Prior : An Experiment

Author

Listed:
  • Drouvelis, M.
  • Müller, W.

    (Tilburg University, School of Economics and Management)

  • Possajennikov, A.

    (Tilburg University, School of Economics and Management)

Abstract

The common prior assumption is pervasive in game-theoretic models with incomplete information. This paper investigates experimentally the importance of inducing a common prior in a two-person signaling game. For a specific probability distribution of the sender’s type, the long-run behavior without an induced common prior is shown to be different from the behavior when a common prior is induced, while for other distributions behavior is similar under both regimes. We also present a learning model that allows players to learn about the other players’ strategies and the prior distribution of the sender’s type. We show that this learning model accurately accounts for all main features of the data.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Drouvelis, M. & Müller, W. & Possajennikov, A., 2009. "Signaling Without Common Prior : An Experiment," Other publications TiSEM a8169c9e-6667-42f7-b97e-6, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:a8169c9e-6667-42f7-b97e-6dee87821f4b
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/1094493/2009-28.pdf
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    References listed on IDEAS

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    Cited by:

    1. Brandts, Jordi & Yao, Lan, 2010. "Ambiguous Information and Market Entry: An Experimental Study," MPRA Paper 25276, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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