Pervasive signaling. Issue 1 (21st January 2023)

• Record Type: Journal Article
• Authors: Bernheim, B. Douglas; Bodoh‐Creed, Aaron L.
• Is Part Of: Theoretical economics. Volume 18:Issue 1(2023)
• Page Start: 163
• Page End: 196
• Publication Date: 2023-01-21
• Subjects: Multidimensional signaling -- efficient information transmission -- online social networks; D82; Economics -- Periodicals; 330.01
• DOI: 10.3982/TE4641
• Languages: English
• ISSNs: 1933-6837

Abstract

Abstract : How does the increasing publicness of decisions (due, e.g., to social media) affect the total costs of social signaling distortions? While pervasive signaling may induce pervasive distortions, it may also permit people to signal while distorting each choice to a smaller degree. Ironically, for a broad class of environments, a sufficient increase in the number of signaling opportunities allows senders to "live authentically, " that is, to signal their types at arbitrarily low overall cost. This result survives when social networking technologies expand signaling opportunities and audience size in tandem, provided the returns to the latter are not too great.