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The above strategy profile, when it's an equilibrium, is often referred to as the 'separating equilibrium', since according to this strategy profile, the High and
The above strategy profile, when it's an equilibrium, is often referred to as the 'separating equilibrium', since according to this strategy profile, the High and Low types behave differently from each other - they separate. That is not the case in the following two strategy profiles, which are referred to as 'pooling equilibrium,'- because the two types of senders behave the same way and hence 'pool' with each other: 1
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