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Signaling, Screening, and Core Stability

Author

Listed:
  • Yusuke Kamishiro
  • Rajiv Vohra
  • Roberto Serrano

Abstract

This paper provides a noncooperative approach to core stability in an economy with incomplete information. We study the perfect Bayesian equilibria of an extensive form mechanism that extends the one used by Serrano and Vohra (1997) to implement the core of a complete-information economy. This leads to a version of the core that we refer to as the sequential core, which allows for information flows through proposals that can be viewed as signaling devices and/or screening contracts. Equilibrium refinements are then used to provide justifications for the coarse core and the fine core.

Suggested Citation

  • Yusuke Kamishiro & Rajiv Vohra & Roberto Serrano, 2022. "Signaling, Screening, and Core Stability," Working Papers 2022-001, Brown University, Department of Economics.
    • Handle: RePEc:bro:econwp:2022-001
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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