A separating equilibrium is an equilibrium where different types play differently so their types can be inferred by their actions.

Name: A separating equilibrium is an equilibrium where different types play differently so their types can be inferred by their actions.
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Question

Quizplus · Accepted Answer

In a separating equilibrium, different types of players behave differently in order to reveal their type to others. This allows for the inference of types based on observed actions. Therefore, the statement is true.

A Separating Equilibrium Is an Equilibrium Where Different Types Play