Bayesian Signaling: good way to think about signaling is handcrafting a piece of evidence, that for the other person will be objectively strong evidence for the claim that you’re making.
Hearing X saying “I’m pretty smart” is a weak evidence for the hypothesis “X is smart”. Seeing a Harvard’s degree with X’s name on it is much stronger evidence.
Hearing X saying “I’m a millionaire” is a weak evidence for the hypothesis “X is a millionaire”. Receiving a 10000$ gift from them is much stronger evidence.
Bayesian Signaling: good way to think about signaling is handcrafting a piece of evidence, that for the other person will be objectively strong evidence for the claim that you’re making. Hearing X saying “I’m pretty smart” is a weak evidence for the hypothesis “X is smart”. Seeing a Harvard’s degree with X’s name on it is much stronger evidence. Hearing X saying “I’m a millionaire” is a weak evidence for the hypothesis “X is a millionaire”. Receiving a 10000$ gift from them is much stronger evidence.