|Appears in Collections:||Economics Journal Articles|
|Peer Review Status:||Refereed|
|Title:||Noisy signaling: Theory and experiment|
|Authors:||de, Haan Thomas|
|Citation:||de Haan T, Offerman T & Sloof R (2011) Noisy signaling: Theory and experiment, Games and Economic Behavior, 73 (2), pp. 402-428.|
|Abstract:||We introduce noise in the signaling technology of an otherwise standard wasteful signaling model (Spence, 1973). We theoretically derive the properties of the equilibria under different levels of noise and we experimentally test how behavior changes with noise. We obtain three main insights. First, if the amount of noise increases, high types aiming for separation (must) increase their signaling expenditures. This theoretical prediction is confirmed in our experiment. Second, for intermediate and high levels of noise, a separating and pooling equilibrium co-exist. In the experiment, subjects tend to shift from coordinating on a separating outcome to a pooling one as noise increases. Third, a surprising theoretical insight is that a separating equilibrium ceases to exist for low levels of noise (and an unfavorable prior). Yet in the experiment subjects then do coordinate on separation. A simple attraction learning model incorporating belief learning, imitation and reinforcement, explains this stable non-equilibrium behavior.|
|Rights:||The publisher does not allow this work to be made publicly available in this Repository. Please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study.|
University of Amsterdam
University of Amsterdam
|Games and Economic Behavior 2011.pdf||881.59 kB||Adobe PDF||Under Embargo until 31/12/2999 Request a copy|
Note: If any of the files in this item are currently embargoed, you can request a copy directly from the author by clicking the padlock icon above. However, this facility is dependant on the depositor still being contactable at their original email address.
This item is protected by original copyright
Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.
If you believe that any material held in STORRE infringes copyright, please contact firstname.lastname@example.org providing details and we will remove the Work from public display in STORRE and investigate your claim.