Pooling equilibrium
Pooling equilibrium
A pooling equilibrium in game-theory is an equilibrium outcome of a signaling-game.
In a signaling-game, players send actions called "signals" to other players. These signals are based on privately held information, which is not known to others in the game. These actions do reveal a player's "type" to other players, who then choose their strategies accordingly. In a pooling equilibrium, all types of a given sender send the same signal. Some senders represent their true type, while others correctly mimic the type of others, having no incentive to differentiate themselves. As a result, the receiver acts as if they have received no information, maximizing their utility according to their prior beliefs.