Which of the Following Is a True Statement About Signaling

question 4

Multiple Choice

Which of the following is a true statement about signaling games?

• A)In a separating equilibrium,the second mover's posterior beliefs are the same as his priors.
• B)In a separating equilibrium,Bayes' rule cannot be used to compute posterior beliefs (because it produces an undefined answer).
• C)In a pooling equilibrium,both the first and second movers choose the same action.
• D)In a pooling equilibrium,the second mover learns nothing from the first mover's action.

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Definitions:

Sociological

Pertains to the study of social behavior, organization, and the structure of society.

Theories

Are systematic explanations of phenomena, often based on observation, experimentation, and reasoning, used to predict outcomes and guide research in various fields of study.

Egoism

Egoism is the ethical stance that treats self-interest as the foundation of morality.

Ethical Egoism

The ethical theory that individuals should act in their own self-interest and that this serves the common good.