Signaling Games with Costly Monitoring
Theoretical Economics
2023-02-03 v1 Computer Science and Game Theory
Abstract
If in a signaling game the receiver expects to gain no information by monitoring the signal of the sender, then when a cost to monitor is implemented he will never pay that cost regardless of his off-path beliefs. This is the argument of a recent paper by T. Denti (2021). However, which pooling equilibrium does a receiver anticipate to gain no information through monitoring? This paper seeks to prove that given a sufficiently small cost to monitor any pooling equilibrium with a non-zero index will survive close to the original equilibrium.
Keywords
Cite
@article{arxiv.2302.01116,
title = {Signaling Games with Costly Monitoring},
author = {Reuben Bearman},
journal= {arXiv preprint arXiv:2302.01116},
year = {2023}
}
Comments
19 pages, 6 figures