8. Signalling

Assigned Reading

Central Idea: A costly action conveys information

Antithesis: To incur a cost without a direct benefit is foolish.

Topics That Might be Discussed in Class

Important Terms

Signalling, Screening, Adverse Selection

For Next Time

Additional Material

Return to the Thinking Strategically Home Page at http://pacioli.bus.indiana.edu/erasmuse/g570/g570.htm.

Send comments to Prof. Rasmusen. Last updated: January 31, 2002.