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Lewis signaling game

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The game

The underlying game has two players, the sender and the receiver. The world can be in any of a number of states and the sender is aware of that state. The sender has at its disposal a fixed set of signals that it can send to the receiver. The receiver can observe the signal sent, but not the state of the world, and must take some action. For each state, there is a unique correct action and both the sender and receiver prefer that the receiver take the correct action in every state. Because both the sender and receiver prefer the same outcomes as one another, this game is a game of perfect common interest.

The simplest version of this game (pictured above) has two states, two signals, and two acts.

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