portfolios to investors. We extend the signaling model for single sales of risky assets to portfolio sales. We identify … conditions under which signaling at the portfolio level dominates signaling at the single asset level. In particular, when banks …

In Spence’s (1973) signaling by education model and in many of its extensions, firms can only infer workers …’ productivities. We characterize the trade–offs between signaling by workers and costly information acquisition by firms. Information … workers have low productivity. Our analysis applies also to other signaling problems, e.g. the financial structure of firms …

We analyze optimal redistribution in the presence of labor market signaling where innate productive ability is not only … unobserved by the government, but also by prospective employers. Signaling in both one and two dimensions is considered, where in …

up. In this signaling game, proposing (or getting married) is costly but can indicate strong love. The striking property … sufficiently large, the signaling mechanism breaks down, and only a pooling equilibrium in which fewer couples get married remains …