What is signaling, and what properties does it have?
- signaling clearly shows resources or power (that is its primary purpose)
- is hard to fake, e.g., because it incurs a loss (expensive Swiss watch) or risk (peacocks tail)
- plausible deniability that it is intended as signaling
- mostly zero-sum on the individual level (if I show that I have more, it implies that others have less in relation)
- signaling burns societal resources
- signaling itself can’t be made more efficient, but the resources spent can be used more efficiently in society (e.g., spending on charity instead of luxury)
Refreshing your memory:
What is signaling, and what properties does it have?
- signaling clearly shows resources or power (that is its primary purpose)
- is hard to fake, e.g., because it incurs a loss (expensive Swiss watch) or risk (peacocks tail)
- plausible deniability that it is intended as signaling
- mostly zero-sum on the individual level (if I show that I have more, it implies that others have less in relation)
- signaling burns societal resources
- signaling itself can’t be made more efficient, but the resources spent can be used more efficiently in society (e.g., spending on charity instead of luxury)
More here and here.