Strong Forward Induction in Monotonic Multi-Sender Signaling Games

Péter Vida, Takakazu Honryo and Helmuts Azacis

No 2022-08, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: We introduce a new solution concept called strong forward induction which is implied by strategic stability in generic finite multi-sender signaling games (Proposition 1) and can be easily extended to and applied in arbitrary extensive form games with perfect recall. We apply this notion to infinite monotonic 10 signaling games and show that a unique pure strong forward induction equilibrium exists and its outcome is necessarily non-distorted (Theorem 1). Finally, we show that in this class of games the non-distorted equilibrium outcomes are limits of stable outcomes of finite games (Proposition 2).

Keywords: multi-sender signaling; forward induction; strategic stability; monotonic games (search for similar items in EconPapers)
JEL-codes: C72 D82 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-gth and nep-mic
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2022-08

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