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Signaling games

Signaling games. consider two firms Oldstar ( old , set in the market) Nova (new) if fight happens ,oldstar can beat weak nova but not the strong, the winner has the market to itself. for oldstar 3 ,for nova 4 and cost of fighting is -2. payoff matrix. equilibrium without signaling.

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Weak nova - PowerPoint PPT Presentation

Signaling games