Linear Riley equilibria in quadratic signaling games

A-Tier
Journal: Journal of Economic Theory
Year: 2023
Volume: 213
Issue: C

Authors (3)

Weng, Xi (Peking University) Wu, Fan (not in RePEc) Yin, Xundong (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study signaling games with quadratic payoffs. As signaling games admit multiple separating equilibria, many equilibrium selection rules are proposed and a well-known solution is Riley equilibria. They are separating equilibria in which the sender achieves the highest equilibrium payoff for all types among all separating equilibria. We analyze the conditions for Riley equilibria to be linear, a common assumption in many applications. We derive a sufficient and necessary condition for the existence and uniqueness of linear Riley equilibria. We apply the result to confirm the dominance of linear equilibria in some classic examples, and we show that, in some other examples, there exist previously unknown nonlinear Riley equilibria.

Technical Details

RePEc Handle
repec:eee:jetheo:v:213:y:2023:i:c:s0022053123001291
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29