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A pooling equilibrium in game theory is an equilibrium outcome of a signaling game. [1] [2]
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. [3] These actions do not 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. [4]
