Eliezer, in most signaling theories that economists construct the observers of signals are roughly making reasonable inferences from the signals they observe. If someone proposed to us that people take feature F as signaling C, but in fact there is no relation between F and C, we would want some explanation for this incredible mistake, or at least strong evidence that such a mistake was being consistently made.
Eliezer, in most signaling theories that economists construct the observers of signals are roughly making reasonable inferences from the signals they observe. If someone proposed to us that people take feature F as signaling C, but in fact there is no relation between F and C, we would want some explanation for this incredible mistake, or at least strong evidence that such a mistake was being consistently made.