Dilmé, Francesc - Department of Economics, University of Pennsylvania - 2014
incentive compatible? When the market is pessimistic, is it better to give up or keep signaling? We introduce hidden actions in … a dynamic signaling model in order to answer these questions. Separation is found to be fast in equilibrium when sending … quality of the asset, depending on the cost structure, the seller either “gives-up” by stopping signaling, or the seller …