Perfect Bayesian Equilibrium and Signaling Games

Abstract

This chapter examines again contexts of incomplete information but in sequential move games. Unlike simultaneous-move settings, sequential moves allow for players’ actions to convey or conceal the information they privately observe to players acting in subsequent stages and who did not have access to such information (uninformed players). That is, we explore the possibility that players’ actions may signal certain information to other players acting latter on in the game.