Testing the sender: When signaling is not enough

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dc.contributor.authorFigueroa, Nicolas
dc.contributor.authorGuadalupi, Carla
dc.date.accessioned2025-01-20T22:06:43Z
dc.date.available2025-01-20T22:06:43Z
dc.date.issued2021
dc.description.abstractA worker, privately informed about his fit with a firm, chooses an action to signal this information. The firm might perform a test and decides whether to hire the worker. We define firm effectiveness as the difference between the optimal probabilities of hiring a good-fit and a bad-fit worker, and show that it has an inverted U-shape with respect to beliefs. When the worker's expected fit is low, firm effectiveness is increasing in beliefs, and information is revealed through both signaling and information acquisition. Since the high type is more likely to pass a more exacting test, he will exert costly effort to improve firm's beliefs. When, on the other hand, the worker's expected fit is high, firm effectiveness is decreasing in beliefs and any signaling effort made by the high type would be mimicked by the low type, who benefits more from relaxed standards, so that information is generated exclusively by the firm through tests. (c) 2021 Elsevier Inc. All rights reserved.
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.jet.2021.105348
dc.identifier.eissn1095-7235
dc.identifier.issn0022-0531
dc.identifier.urihttps://doi.org/10.1016/j.jet.2021.105348
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/94221
dc.identifier.wosidWOS:000704994000021
dc.language.isoen
dc.revistaJournal of economic theory
dc.rightsacceso restringido
dc.subjectSignaling
dc.subjectAsymmetric information
dc.subjectInformation acquisition
dc.subject.ods01 No Poverty
dc.subject.ods08 Decent Work and Economic Growth
dc.subject.ods10 Reduced Inequality
dc.subject.odspa01 Fin de la pobreza
dc.subject.odspa08 Trabajo decente y crecimiento económico
dc.subject.odspa10 Reducción de las desigualdades
dc.titleTesting the sender: When signaling is not enough
dc.typeartículo
dc.volumen197
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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