We study a receiver’s learning problem of choosing an informative test in a signaling environment. Each test that the receiver chooses induces a signaling subgame. Thus, in addition to the direct effect of the chosen test on the information that the receiver obtains, it also has an indirect effect on the receiver’s information through the sender’s signaling strategy. We analyze how signaling considerations affect the receiver’s preference relation over tests. Specifically, we find that the receiver’s preference relation does not comply with Blackwell’s order. Our findings may help shed light on phenomena such as grade inflation and information coarsening.
(joint with B. Zick)