People with different information choose different alternatives in ________ equilibria; they choose the same alternatives,despite having different information,in ________ equilibria.
A) asymmetric; pooling
B) separating; pooling
C) asymmetric; coordinating
D) separating; coordinating

Question

Quizplus · Accepted Answer

In separating equilibria, individuals with different types of information choose different actions or signals, revealing their private information through their choices. In pooling equilibria, despite having different information, individuals choose the same actions or signals, thus "pooling" together and not revealing their private information through their choices.

People with Different Information Choose Different Alternatives in ________ Equilibria;