midGame Theory
What is pooling equilibrium in signaling games?
Updated May 16, 2026
Short answer
A pooling equilibrium occurs when all types send the same signal, making them indistinguishable.
Deep explanation
In pooling equilibrium, the receiver cannot infer private information because different types choose identical signals. As a result, the receiver's belief remains unchanged, and actions are based on prior probabilities.
Real-world example
Used in markets where low and high quality firms use identical marketing claims.
Common mistakes
- Assuming signals always separate types.
Follow-up questions
- Why do pooling equilibria occur?
- Is pooling efficient?