, we present three related scenarios where rational behaviour leads to outcomes that are observationally equivalent to … financial services industry led to the seemingly irrational behaviour of bankers and other employees of financial institutions …

types to voters. We identify two novel implications of models in which signalling incentives are important. First, because …. Second, voters can exploit the signalling behavior of politicians by precommitting to a higher threshold for signals received …. Raising the threshold discourages signalling effort by low quality politicians but encourages effort by high quality …