observed by the incumbent and some fraction of informed consumers. This leads to price signalling rivalry between the … outcome. -- Quality uncertainty ; Signalling ; Oligopoly …

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 …