Signaling with costly acquisition of signals

Ennio Bilancini and Leonardo Boncinelli

Journal of Economic Behavior & Organization, 2018, vol. 145, issue C, 141-150

Abstract: In this paper we investigate the consequences of introducing a cost to observe the signal in an otherwise standard signaling game. Beyond identifying equilibria, which we contrast with those of a standard signaling game, we study their robustness to two important classes of refinements: acting through restrictions on out-of-equilibrium beliefs and through trembles. Our results suggest that more prominence should be given to the pooling outcome on the minimum signal.

Keywords: Costly cognition; Costly signal acquisition; Pooling; Equilibrium refinements; Forward induction; Trembles (search for similar items in EconPapers)
JEL-codes: D82 D83 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Signaling with Costly Acquisition of Signals (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:145:y:2018:i:c:p:141-150

DOI: 10.1016/j.jebo.2017.10.022

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