The Divinity Criterion or Divine Equilibrium or Universal Divinity is a refinement of Perfect Bayesian equilibrium in a signaling game proposed by Banks and Sobel (1987).[1] One of the most widely applied refinement is the D1-Criterion.
It is a restriction of receiver's beliefs to the type of senders for whom deviating towards an off-the-equilibrium message could improve their outcome compared to the equilibrium payoff. [2] In addition to the restriction suggested by the Intuitive Criterion, the Divinity Criterion considers only those types which are most likely to send the off-the-equilibrium message.
If more than one sender could benefit from the deviation, the Intuitive Criterion assigns equal probabilities for all the senders, whereas the D1-Criterion considers different probabilities.
^ Banks, Jeffrey, and Joel Sobel, 1987, "Equilibrium selection in signaling games", Econometrica, 55(3), 647-661.
^The Intuitive and Divinity Criterion: Interpretation and Step-by-Step Examples Felix Munoz-Garcia, Ana Espinola-Arredondo, Journal of Industrial Organization Education. Volume 5, Issue 1, Pages 1–20, ISSN (Online) 1935-5041, DOI: 10.2202/1935-5041.1024, March 2011
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