Signaling, Globality, and the Intuitive Criterion
39 Pages Posted: 8 Jun 2004
Date Written: May 2004
A global signaling game is a sender-receiver game in which the sender is only imperfectly informed about the receiver's preferences. The paper considers an economically relevant class of signaling games that possess more than one Perfect Bayesian equilibrium. For this class of games, it is shown that a Perfect Bayesian equilibrium is unaffected by a small perturbation of the information structure if and only if it is consistent with a criterion suggested by Cho and Kreps (1987). Moreover, the equilibrium in the global signaling game is essentially unique.
Keywords: Global Games, Signaling, Intuitive Criterion
JEL Classification: C72
Suggested Citation: Suggested Citation