A pooling equilibrium in
game theory
Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appli ...
is an equilibria result of a
signaling game
In game theory, a signaling game is a simple type of a dynamic Bayesian game.Subsection 8.2.2 in Fudenberg Trole 1991, pp. 326–331
The essence of a signalling game is that one player takes an action, the signal, to convey information to another ...
.
In a signaling game, players send actions called "signals" to other players in the game. Signaling actions are chosen based on privately held information (not known by other players in the game). These actions do not reveal a player's "type" to other players in the game, and other players will choose
strategies
Strategy (from Greek στρατηγία ''stratēgia'', "art of troop leader; office of general, command, generalship") is a general plan to achieve one or more long-term or overall goals under conditions of uncertainty. In the sense of the " ar ...
accordingly. Under this equilibria, all types of a given sender will send the same signal, some representing their true type, some correctly mimicking the type of others, as they have no incentive to differentiate themselves. The receiver therefore acts like having received no information/message maximizing his/her utility according to his/her prior belief.
See also
separating equilibrium.
Game theory equilibrium concepts
Asymmetric information
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