I. Choose the Correct Answer 1. An object moves in the xy plane with an acceleration that has a positive x component. At time=0 the object has a velocity given by=3i +0j. What can be concluded about the y component of the acceleration?
Signaling games are used to model the following situation: Player 1, the Sender, receives some private information and sends a message m E M to Player 2, the Receiver. The latter, in turn, observes m but not 0, and chooses response r E R. Players'payoffs depend on 0, m and r. What could be simpler? Yet, there is a huge number of economically interesting games that fit nicely within this framework: Spence's job market signaling model is the leading example, but applications abound in IO (limit pricing, disclosure...) finance (security design) and political economics