"Signaling" refers to actions by an informed party for the sole purpose of
A) telling another party that the signaler has information to reveal, without actually revealing that information.
B) conveying false information.
C) confusing another party.
D) credibly revealing private information.

Question

Quizplus · Accepted Answer

Signaling refers to actions taken by an informed party to credibly reveal private information to another party, often for the purpose of providing assurance or reducing information asymmetry. It is not about conveying false information, causing confusion, or teasing others with information without revealing it.

"Signaling" Refers to Actions by an Informed Party for the Sole