About
The aim of this project was to contribute to the literature on dynamic games of incomplete information, both in terms of theory as well as applications. At the theoretical level there were two issues that we wanted to study: Perfect Bayesian equilibrium in matching games and sequential signaling. At the applied level our objectives were to develop a model of signaling advertising by a multiproduct firm, a model of predatory dumping based on incomplete information and a limit pricing model based on economies of scope.
Our project was based on formal economic models, to which we applied standard game theory equilibrium solutions. In particular, we analyzed the Perfect Bayesian equilibria of the game and, whenever there exist multiple equilibria we applyed equilibrium refinements (such as the domination criterion, the intuitive criterion, the Grossman and Perry criterion, the divinity criterion).