Certification of Credence Goods with Consideration of Consumers’ Learning Ability

Table 4

Equilibrium forms corresponding to different conditions in the case of the infinitely repeated signaling model.

Conditions	Equilibrium forms
()𝑐𝛼>1−𝛿ℎ−𝑐𝑙−𝑐𝑡+𝛿(1−𝛿)𝑐𝑡𝛿𝑝ℎ−𝑐ℎ+(1−𝛿)𝑐𝑡  and 𝑐𝑒∈𝑝ℎ−𝑐𝑙()−𝑝1−𝛿1−𝛼^𝑙−𝑐𝑙1−𝛿−𝑐𝑡,𝑝ℎ−𝑐ℎ−𝑝1−𝛿^𝑙−𝑐𝑙1−𝛿	Separating equilibrium
()𝑐𝛼>1−𝛿ℎ−𝑐𝑙−𝑐𝑡+𝛿(1−𝛿)𝑐𝑡𝛿𝑝ℎ−𝑐ℎ+(1−𝛿)𝑐𝑡  and 𝑐𝑒<𝑝ℎ−𝑐𝑙()−𝑝1−𝛿1−𝛼^𝑙−𝑐𝑙1−𝛿−𝑐𝑡	Pooling equilibrium
()𝑐𝛼>1−𝛿ℎ−𝑐𝑙−𝑐𝑡+𝛿(1−𝛿)𝑐𝑡𝛿𝑝ℎ−𝑐ℎ+(1−𝛿)𝑐𝑡  and 𝑐𝑒>𝑝ℎ−𝑐ℎ−𝑝1−𝛿^𝑙−𝑐𝑙1−𝛿	Pooling equilibrium
()𝑐𝛼≤1−𝛿ℎ−𝑐𝑙−𝑐𝑡+𝛿(1−𝛿)𝑐𝑡𝛿𝑝ℎ−𝑐ℎ+(1−𝛿)𝑐𝑡	Pooling equilibrium