Separating equilibrium

ID: separating-equilibrium

Separating equilibrium is a concept used in game theory and economics, particularly in the context of signaling games. It refers to a situation where different types of players (often with private information) choose distinct actions or strategies that reveal their type to other players. In a separating equilibrium, the actions taken by each type of player provide clear signals that allow other players to infer the type of the signaling player accurately.

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