Good signals gone bad: dynamic signalling with switching efforts

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Tác giả: Sander Heinsalu

Ngôn ngữ: eng

Ký hiệu phân loại: 654.7 [Unassigned]

Thông tin xuất bản: 2017

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Bộ sưu tập: Metadata

ID: 161560

Comment: 1 figureThis paper examines signalling when the sender exerts effort and receives benefits over time. Receivers only observe a noisy public signal about the effort, which has no intrinsic value. The modelling of signalling in a dynamic context gives rise to novel equilibrium outcomes. In some equilibria, a sender with a higher cost of effort exerts strictly more effort than his low-cost counterpart. The low-cost type can compensate later for initial low effort, but this is not worthwhile for a high-cost type. The interpretation of a given signal switches endogenously over time, depending on which type the receivers expect to send it. JEL classification: D82, D83, C73. Keywords: Dynamic games, signalling , incomplete information
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