Artikel
The welfare cost of signaling
Might the resource costliness of making signals credible be low or negligible? Using a job market as an example, we build a signaling model to determine the extent to which a transfer from an applicant might replace a resource cost as an equilibrium method of achieving signal credibility. Should a firm's announcement of hiring for an open position be believed, the firm has an incentive to use a properly-calibrated fee to implement a separating equilibrium. The result is robust to institutional changes, outside options, many firms or many applicants and applicant risk aversion, though a sufficiently risk-averse applicant who is sufficiently likely to be a high type may lead to a preference for a pooling equilibrium.
- Language
-
Englisch
- Bibliographic citation
-
Journal: Games ; ISSN: 2073-4336 ; Volume: 8 ; Year: 2017 ; Issue: 1 ; Pages: 1-21 ; Basel: MDPI
- Classification
-
Wirtschaft
- Subject
-
costly signaling
social cost of signaling
asymmetric information
separating equilibrium
- Event
-
Geistige Schöpfung
- (who)
-
Yang, Fan
Harstad, Ronald M.
- Event
-
Veröffentlichung
- (who)
-
MDPI
- (where)
-
Basel
- (when)
-
2017
- DOI
-
doi:10.3390/g8010011
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Yang, Fan
- Harstad, Ronald M.
- MDPI
Time of origin
- 2017
Other Objects (12)
The dynamics of costly signaling
The cost of overcoming the zero lower-bound: A welfare analysis
Cost of reasoning and strategic Sophistication
On transaction-cost models in continuous-time markets
A divisia user cost interpretation of the yield spread recession prediction
Measuring and comparing two kinds of rationalizable opportunity cost in mixture models
Optimization of inventory holding cost due to price, weight, and volume of items
Levered-beta and cost of capital sensitivities: An experimental investigation in capital structure
Offsetting risk in a neoliberal environment: The link between asset-based welfare and NIMBYism
Optimal investment under cost uncertainty
Selection-mutation dynamics of signaling games
A welfare analysis of capital insurance
The dynamics of costly signaling
The cost of overcoming the zero lower-bound: A welfare analysis
Cost of reasoning and strategic Sophistication
On transaction-cost models in continuous-time markets
A divisia user cost interpretation of the yield spread recession prediction
Measuring and comparing two kinds of rationalizable opportunity cost in mixture models
Optimization of inventory holding cost due to price, weight, and volume of items
Levered-beta and cost of capital sensitivities: An experimental investigation in capital structure
Offsetting risk in a neoliberal environment: The link between asset-based welfare and NIMBYism
Optimal investment under cost uncertainty
Selection-mutation dynamics of signaling games
A welfare analysis of capital insurance
The dynamics of costly signaling
The cost of overcoming the zero lower-bound: A welfare analysis
Cost of reasoning and strategic Sophistication
On transaction-cost models in continuous-time markets
A divisia user cost interpretation of the yield spread recession prediction
Measuring and comparing two kinds of rationalizable opportunity cost in mixture models
Optimization of inventory holding cost due to price, weight, and volume of items
Levered-beta and cost of capital sensitivities: An experimental investigation in capital structure
Offsetting risk in a neoliberal environment: The link between asset-based welfare and NIMBYism
Optimal investment under cost uncertainty
Selection-mutation dynamics of signaling games