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Due to incentives to misrepresent, it is difficult to differentiate the ▻ There is no money. Private values indicate willingness to engage in costly signaling. ▻ The designer faces a trade-off between allocative efficiency and cost
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We conclude that costly signals can serve as an imperfect assorting mechanism, but the size of the costs needs to be carefully balanced with potential benefits Here's how, using game theory, to know if someone actually likes you. Assess if someone likes you by analyzing their actions as
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Why Expensive Things (Like Rings) Exist: The Science of "Costly Signals" Contents · Sexual selection · Honest signals · Dishonest signals · Handicap principle · Costly signalling and Fisherian diploid dynamics · Models of signalling
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