Introduction
ƒ A class of games with two players in which one player is
informed while the other is not
ƒ The informed party plays first by sending a signal that may
reveal information relating to its type
ƒ The uninformed party then tries to decipher these signals
by some interpretative scheme in order to make inferences
about hidden information
ƒ Examples: The framed degree in your doctor’s office, the
celebrity endorsement of a popular cosmetic, etc.
ƒ Useful for inferring information
ƒ Needs interpretation
ƒ Subject to manipulation