Keyword Analysis & Research: signaling microeconomics


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Frequently Asked Questions

What is signaling in economics?

That ‘something’, in the world of economics, is known as ‘signaling’. “Indication or information passed passively or unintentionally between participants in a market.

What are some good books on signaling in economics?

Michael Spence (2002). "Signaling in Retrospect and the Informational Structure of Markets". American Economic Review. 92 (3): 434–459. doi: 10.1257/00028280260136200. (also available as his Nobel Prize lecture PDF) Andrew Weiss (1995). "Human Capital vs. Signaling Explanations of Wages". The Journal of Economic Perspectives. 9 (4): 133–154.

What is a market signal?

According to BusinessDictionary.com, a market signal is an: “Indication or information passed passively or unintentionally between participants in a market.

Can signalling theory be applied to the used car market?

Signalling has been studied and proposed as a means to address asymmetric information in markets for "lemons". Recently, signalling theory has been applied in used cars market such as eBay Motors.


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