Welcome to the new version of CaltechAUTHORS. Login is currently restricted to library staff. If you notice any issues, please email coda@library.caltech.edu
Published September 19, 2017 | Submitted
Report Open

Equilibrium Selection in Signaling Games


We present a refinement of the set of sequential equilibria [Kreps & Wilson (1982)] for generic signaling games based on rationality postulates for off-the-equilibrium-path beliefs. This refinement concept eliminates equilibria which Kreps (1985) and others dismiss on intuitive grounds. In addition, we derive a characterization of the set of stable equilibria [Kohlberg and Mertens (1982)] for generic signaling games in terms of equilibrium strategies and restrictions on beliefs. Examples are given which differentiate the predictions of these equilibrium concepts.

Additional Information

Revised. Original dated to March 1985. Presented at the 5th World Congress of the Econometric Society, Boston MA, August 1985. We thank participants of Caltech, UCSD and Rand Corporation Theory Workshops, Drew Fudenberg, David Kreps, and two referees for valuable comments. Sobel thanks Joe Farrell and Chris Harris for many conversations on related topic and the National Science Foundation for partial support under grant SES 84-08655. Published as Banks, Jeffrey S., and Joel Sobel. "Equilibrium selection in signaling games." Econometrica: Journal of the Econometric Society (1987): 647-661.

Attached Files

Submitted - sswp565_-_revised.pdf


Files (322.6 kB)
Name Size Download all
322.6 kB Preview Download

Additional details

August 19, 2023
January 14, 2024