traditional investors. The analysis is performed within a two-period, two-state signaling model with information asymmetry between …

justice and a loss of control over the size of the sanction. We use the signaling model of social behavior by Bénabou and …

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 …