Inventing New Signals

A model for inventing new signals is introduced in the context of sender–receiver games with reinforcement learning. If the invention parameter is set to zero, it reduces to basic Roth–Erev learning applied to acts rather than strategies, as in Argiento et al. (2009). If every act is uniformly reinforced in every state it reduces to the Chinese Restaurant Process–also known as the Hoppe–Pólya urn–applied to each act. The dynamics can move players from one signaling game to another during the learning process. Invention helps agents avoid pooling and partial pooling equilibria.