Concept: signaling

Signaling is the idea that one party (termed the “agent”) credibly conveys some information about itself to another party (the “principal”). For example, in job-market signaling, (potential) employees send a signal about their ability level to the employer by acquiring certain education credentials. The informational value of the credential comes from the fact that the employer assumes it is positively correlated with having greater ability.

The Apartment icon

The Apartment


The Deal icon

The Deal

deadweight loss of gift-giving | signaling | utility

The Invitations icon

The Invitations

credible threat | signaling | strategic move

The Truth icon

The Truth


The Mango icon

The Mango

asymmetric information | signaling

The Pilot icon

The Pilot

game theory | signaling