Signal and Competition for Licenses of Occupational Pension Fund Management Institutions

Abstract:

A signaling game,where the occupational pension fund management institutions are senders to compete for licenses and the regulation authority is the receiver,is set up.Normative analysis shows that the separating equilibrium of market success exists,where highability institutions signal the competence with a cost higher than that of lowability institutions to be protected from strategic signal inference from lowability institutions.And the more the highability institutions are,the lower the signaling cost is.Signaling cost data from content analysis empirical study show the higher probability to win the licenses is accompanied with the higher signaling cost.