Signalling refers to actions taken by an informed party for the purpose of credibly revealing their private information.

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Signalling is defined as an action taken by an informed party to reveal their private information to others. This is done in order to signal their credibility and build trust with the other party. For example, a job candidate might have a college degree, which is a signal of their skills and qualifications to potential employers. Signalling is an important concept in economics, game theory, and other fields where understanding the incentives of different parties is crucial.

Signalling Refers to Actions Taken by an Informed Party for the Purpose