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 …

constraints or the promotion of follow-on innovation. …

Empirical studies have uncovered an inverted-U relationship between product-market competition and innovation. This is … inconsistent with the original Schumpeterian Model, where greater competition reduces the profitability of innovation. We show that …

acquisition ; inspection ; lemons ; middlemen ; signaling …

We study a symmetric private value auction with signaling, in which the auction outcome is used by an outside observer … clock, affects signaling incentives differently in both auction formats, and thereby also the bidders’ incentives to overbid …