briefly explain the 3 elements that form a perfect bayes-nash equilibrium for a signaling game

Expert Solution

The perfect Bayesian equilibria in such a game can be divided in three different categories or elements pooling equilibria, separating equilibria and semi-separating

A pooling equilibrium is an equilibrium where senders with different types all choose the same message. This means that the sender's message does not give any information to the receiver, so the receiver's beliefs are not updated after seeing the message.
A separating equilibrium is an equilibrium where senders with different types always choose different messages. This means that the sender's message always reveals the sender's type, so the receiver's beliefs become deterministic after seeing the message.
A semi-separating equilibrium is also called partial-pooling equilibriumi, it is an equilibrium where some types of senders choose the same message and other types choose different messages.

If there are more types of senders than there are messages, the equilibrium can never be a separating equilibrium (but may be semi-separating equilibria). There are also hybrid equilibria, in which the sender randomizes between pooling and separating

Perfect Bayesian equilibrium is not a subset of Nash equilibrium. Perfect Bayesian equilibrium requires players to have beliefs that are consistent with the equilibrium strategies of other players. Nash equilibrium does not explicitly specify the beliefs of the players.

If u have some confusion feel free to ask me...i have answered you question as u stated abve in brief words...thank you

Rahul Sunny answered 6 months ago

How is each Nash equilibrium a sub game perfect equilibrium? I need this explained further please!

What is/are the Nash Equilibrium(s) in this game?

Consider the following matrixFirm AFirm BLow PriceHigh PriceLow Price5, 56, 3High Price3, 67, 7What is/are the Nash Equilibrium(s) in this game?Group of answer choices(5,5) only.(7,7) only.both (5,5) and (7,7).There are no Nash equilibriums in this game.

Is every Nash equilibrium of a normal form game Pareto optimal? If yes, provide a proof....

Is every Nash equilibrium of a normal form game Pareto optimal? If yes, provide a proof. Otherwise, provide a counterexample.

explain why a nash equilibrum in a dynamic game may not be subgame perfect? using example...

explain why a nash equilibrum in a dynamic game may not be subgame perfect? using example show how non credible theats are ruled out

What is a Nash equilibrium of the ”Guess Half the Mean” Game? Explain why the experimental...

What is a Nash equilibrium of the ”Guess Half the Mean” Game? Explain why the experimental results in class are different from the theoretical prediction.

5. Solve for Nash Equilibrium in the following 3 Player Game Player 3: Chooses Enter Player...

5. Solve for Nash Equilibrium in the following 3 Player Game Player 3: Chooses Enter Player 2 High Low Player 1 Low 2,0,4 1,1,1 Medium 3,2,3 0,1,0 High 1,0,2 0,0,3 Player 3: Chooses Opt Out Player 2 Player 1 High Low Low 2,0,3 4,1,2 Medium 1,3,2 2,2,2 High 0,0,0 3,0,3

A Nash equilibrium in a game is A. an outcome in which all players are choosing...

A Nash equilibrium in a game is A. an outcome in which all players are choosing the best strategy they can, given the choices being made by all the other players. B. a strategy which is always inferior for a player to choose, regardless of what other players do. C. an outcome in which all players experience their best possible collective outcome. D. an outcome in which a player receives his/her best possible individual payoff. The prisoners’ dilemma game A....

In a strategic game, a Nash equilibrium is Group of answer choices a set of strategies...

In a strategic game, a Nash equilibrium is Group of answer choices a set of strategies (one for each player) that lead to the lowest total payoffs (summed across all players). a set of strategies (one for each player) that are mutual best responses to the other players' strategies. a strategy that mixes equally between all of the different available options. a strategy that gives a higher payoff than any other strategy, no matter what others choose.

In Chapter 1 the Nash Equilibrium in the Assurance Game illustrate the possibility of a “poverty...

In Chapter 1 the Nash Equilibrium in the Assurance Game illustrate the possibility of a “poverty trap" for the farmers of Palanpur, India. Evaluate if the following statement is True or False & Explain why. a. History and “path dependence" have a role to play in determining which equilibrium players end up in.

write an essay about Game Theory, types of games and the Nash Equilibrium?

Question