A basic tenet of game theory is that strong favorable signals must be costly. Why? Because if strong favorable signals weren’t costly, everyone would send them. And if everyone sends strong signals, they cease to be strong. I repeatedly appeal to this principle throughout my
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Strong Cheap Signals
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A basic tenet of game theory is that strong favorable signals must be costly. Why? Because if strong favorable signals weren’t costly, everyone would send them. And if everyone sends strong signals, they cease to be strong. I repeatedly appeal to this principle throughout my