Signaling, Globality, and the Intuitive Criterion

Abstract

A global signaling game is a sender-receiver game in which the sender is only imperfectly informed about the receiver's preferences. The paper considers an economically relevant class of signaling games that possessnmore than one Perfect Bayesian equilibrium. For this class of games, it is shown that a Perfect Bayesian equilibrium is una®ected by a small perturbation of the information structure if and only if it is consistent with a criterionnsuggested by Cho and Kreps (1987). Moreover, the equilibrium in the globalnsignaling game is essentially unique.