The Intuitive and Divinity Criterion: Interpretation and Step-by-Step Examples

Felix Munoz-Garcia and Ana Espinola-Arredondo

Journal of Industrial Organization Education, 2011, vol. 5, issue 1, 1-20

Abstract: The paper presents an intuitive explanation of the Cho and Kreps' (1987) Intuitive Criterion, and the Banks and Sobel's (1987) Divinity Criterion (also referred as D1-Criterion). We provide multiple examples in which students can understand, step-by-step, the two main phases involved in these refinement criteria. Furthermore, we present economic settings in which the Cho and Kreps' (1987) Intuitive Criterion does not restrict the set of equilibria, while the Banks and Sobel's (1987) Divinity Criterion help refine the set of admissible separating equilibria in signaling games.

Keywords: signaling games; refinement criteria; intuitive criterion; divinity criterion (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.2202/1935-5041.1024 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:jioedu:v:5:y:2011:i:1:n:7

DOI: 10.2202/1935-5041.1024

Access Statistics for this article

Journal of Industrial Organization Education is currently edited by James A. Dearden and Jeffrey M. Perloff

More articles in Journal of Industrial Organization Education from De Gruyter
Bibliographic data for series maintained by Peter Golla ().