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AbstractOne of the main contributions of Richard Bradley's book is an elegant extension of Jeffrey's Logic of Decision that countenances the evaluation of conditional prospects. This extension offers a promising new setting in which to model dynamic choice. In Bradley's framework, plans can be understood as conditionals of an appropriate sort, while dynamic consistency can be viewed as providing a constraint on the evaluation of conditionals across time. In this paper, we study connections between planning conditionals and dynamic consistency.

We study the handicap principle in terms of the Sir Philip Sidney game. The handicap principle asserts that cost is required to allow for honest signalling in the face of conflicts of interest. We show that the significance of the handicap principle can be challenged from two new directions. Firstly, both the costly signalling equilibrium and certain states of no communication are stable under the replicator dynamics (i.e. standard evolutionary dynamics); however, the latter states are more likely in cases where honest signalling should apply. Secondly, we prove the existence and stability of polymorphisms where players mix between being honest and being deceptive and where signalling costs can be very low. Neither the polymorphisms nor the states of no communication are evolutionarily stable, but they turn out to be more important for standard evolutionary dynamics than the costly signalling equilibrium.