Article ID Journal Published Year Pages File Type
957388 Journal of Economic Theory 2012 26 Pages PDF
Abstract

In an exchange economy with incomplete information, the signaling core is defined by the set of state-contingent allocations to which no coalitions object under informational leakage through proposals by informed agents. An objection underlying the signaling core is supported by a sequential equilibrium of an ultimatum bargaining game with an informed proposer. We prove that a stationary sequential equilibrium allocation in a Rubinstein-type sequential bargaining game with a restart rule belongs to the signaling core if the belief of players satisfies a self-selection property.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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