Signaling in deterministic and stochastic settings

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2012
Volume: 82
Issue: 1
Pages: 39-55

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We contrast a standard deterministic signaling game with one where the signal-generating mechanism is stochastic. With stochastic signals a unique equilibrium emerges that involves separation and has intuitive comparative-static properties as the degree of signaling depends on the prior type distribution. With deterministic signals both pooling and separating configurations occur. Laboratory data support the theory: in the stochastic variant, there is more signaling behavior than with deterministic signals, and less frequent types distort their signals relatively more. Moreover, the degree of congruence between equilibrium and subject behavior is greater in stochastic settings compared to deterministic treatments.

Technical Details

RePEc Handle
repec:eee:jeborg:v:82:y:2012:i:1:p:39-55
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25