A Tree Formulation for Signaling Games. (11th June 2013)

• Record Type: Journal Article
• Authors: Dassiou, Xeni; Glycopantis, Dionysius
• Other Names: Tsomocos Dimitrios P. Academic Editor.
• Is Part Of: Game theory. Volume 2013(2013)
• Publication Date: 2013-06-11
• Subjects: Game theory -- Periodicals; Game theory; Periodicals; 519.3
• DOI: 10.1155/2013/754398
• Languages: English
• ISSNs: 2314-6559

Abstract

Abstract : The paper has as a starting point the work of the philosopher Professor D. Lewis. We provide a detailed presentation and complete analysis of the sender/receiver Lewis signaling game using a game theory extensive form, decision tree formulation. It is shown that there are a number of Bayesian equilibria. We explain which equilibrium is the most likely to prevail. Our explanation provides an essential step for understanding the formation of a language convention. The informational content of signals is discussed and it is shown that a correct action is not always the result of a truthful signal. We allow for this to be reflected in the payoff of the sender. Further, concepts and approaches from neighbouring disciplines, notably economics, suggest themselves immediately for interpreting the results of our analysis (rational expectations, self-fulfilling prophesies).