Signaling Under Double-Crossing Preferences

• 成果类型: Article
• 署名作者: Chen, Chia-Hui; Ishida, Junichiro; Suen, Wing
• 署名单位: Kyoto University; University of Osaka; University of Hong Kong
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA19210
• 发表日期: 2022
• 页码: 1225-1260
• 关键词: exploration; monopoly

摘要

This paper provides a general analysis of signaling under double-crossing preferences with a continuum of types. There are natural economic environments where the indifference curves of two types cross twice, such that the celebrated single-crossing property fails to hold. Equilibrium exhibits a threshold type below which types choose actions that are fully revealing and above which they pool in a pairwise fashion, with a gap separating the actions chosen by these two sets of types. The resulting signaling action is quasi-concave in type. We also provide an algorithm to establish equilibrium existence by construction.