Game Theory 11 – chap21. Forward induction and Cho-Kreps’ intuitive criterion
Learn how to refine the various PBEs in a signaling game using forward induction.
Learn how to refine the various PBEs in a signaling game using forward induction.
Describe how to find a PBE in a signaling game.
Introduce signaling games and explain how PBEs are defined in these games.
Define a perfect Bayesian equilibrium (PBE), explain its existence, how it relates to existing equilibria (NE/SPE), and finally how this relationship can be used to find a PBE.