Signaling is when someone takes action to:
A) reveal private information about someone else.
B) reveal one's own private information.
C) find out the opportunity cost of acquiring more information.
D) None of these statements is true.

Question

Quizplus · Accepted Answer

Signaling refers to when an individual reveals their own private information to influence the behavior of others. This is often done to demonstrate one's quality, ability, or credibility to gain a competitive advantage. Option A is incorrect because it refers to the act of revealing private information about someone else, which is not an act of signaling. Option C is incorrect because it refers to the act of finding out the opportunity cost of acquiring more information, which is not related to signaling. Option D is incorrect because signaling is a real phenomenon that has been extensively studied in economics and related fields.

Signaling Is When Someone Takes Action To