CHOOSING AMONG SIGNALING EQUILIBRIA IN LOBBYING GAMES - A REPLY TO SLOOF

Randolph Sloof has written a comment on the lobbying-as-signalling mod el in Rasmusen (1993) in which he points out an equilibrium I missed a nd criticizes my emphasis on a particular separating equilibrium (see this issue). In this response, I discuss how to interpret multiple equ ilibria in games and how to interpret mixed strategy equilibria in whi ch two types of player with identical incentives must pick different m ixing probabilities.