Last updated on Jun 18, 2025

How do you test and refine your assumptions in a signaling game model?

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Signaling games are a type of strategic interaction where agents send and receive messages that convey information about their types, preferences, or intentions. They are widely used to model situations such as bargaining, advertising, education, and communication. However, signaling games often rely on assumptions that may not hold in reality, such as common knowledge, perfect rationality, or equilibrium behavior. How do you test and refine your assumptions in a signaling game model? Here are some steps you can follow.

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