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Strong Forward Induction in Monotonic Multi-Sender Signaling Games

Author

Listed:
  • Peter Vida
  • Takakazu Honryo
  • Helmuts Azacis

    (Université de Cergy-Pontoise, THEMA)

Abstract

We introduce a new solution concept called strong forward induction which is implied by strategic stability in generic finite multi-sender signaling games (Proposition 1) and can be easily extended to and applied in arbitrary extensive form games with perfect recall. We apply this notion to infinite monotonic 10 signaling games and show that a unique pure strong forward induction equilibrium exists and its outcome is necessarily non-distorted (Theorem 1). Finally, we show that in this class of games the non-distorted equilibrium outcomes are limits of stable outcomes of finite games (Proposition 2).

Suggested Citation

  • Peter Vida & Takakazu Honryo & Helmuts Azacis, 2022. "Strong Forward Induction in Monotonic Multi-Sender Signaling Games," THEMA Working Papers 2022-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2022-08
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    References listed on IDEAS

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    More about this item

    Keywords

    multi-sender signaling; forward induction; strategic stability; monotonic games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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