Game Theory Foundations · Dynamic games
Information & signaling
When one side knows more (seller about the car, founder about the startup), markets can break down. Costly signals and screening let the informed reveal themselves credibly.
Step 1 of 7 · Overview30 min read ·
Key idea
Prereqs: Sequential games. Next: Bargaining. Akerlof (1970), Spence (1973), Stiglitz: the 2001 Nobel trio.Next: 1. Asymmetric information and lemons