what-is-signaling-in-the-context-of-information-asymmetry

Question

What is signaling in the context of information asymmetry?

Accepted Answer

An action by the informed party to reveal private information to the uninformed party.

Answer

An action by the uninformed party to gather information from the informed party.

Answer

A method to increase the price of a product in a competitive market.

Answer

A strategy to hide information from competitors.