6533b870fe1ef96bd12d0471

RESEARCH PRODUCT

A note on beliefs formation in signalling games

Amparo UrbanoGonzalo Olcina

subject

TheoryofComputation_MISCELLANEOUSEconomics and EconometricsSignallingIncentiveDominance (economics)DivinityBelief formationMathematical economicsFinanceForward inductionMathematics

description

Abstract We present a new criterion, called incentive dominance, for belief formation in signalling games, which subsumes refinements criteria such as equilibrium dominance and divinity. It captures the principle of forward induction through explicitly modelling the player's thought process when forming preliminary beliefs.

https://doi.org/10.1016/0165-1765(93)00311-b