Rush , DelayandtheMoney BurningRefinementin PoliticalSignallingGames HansGersbach

Abstract

We consider an equilibrium refinement in signalling games by allowing agents to perform costly tests of beliefs by burning money. We apply the refinement in a model where the public is unsure about the ability of an agent, such as a government, to foresee the effects of long-term decisions. Agents with much information about the consequences of decisions… (More)

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