"Signaling" refers to actions by an informed party for the sole purpose of
A)telling another party that the signaler has information to reveal, without actually revealing that information.
B)conveying false information.
C)induce employees to put in the effort they are capable of.
D)credibly revealing private information.

Question

Quizplus · Accepted Answer

Signaling refers to a situation in which an informed party conveys certain information to an uninformed party in a way that is credible and can be relied upon. The purpose of signaling is to reduce the information asymmetry between the two parties, and in the case of D, the private information being revealed is credible and can be trusted.

"Signaling" Refers to Actions by an Informed Party for the Sole