Year: 2002
Type: conference-paper
Abstract: This paper analyzes what happens to the Spence signaling model when there is heterogeneity in two dimensions, competency and character. Competency is productivity at work. Character is the taste for study. If heterogeneity in character is low, the equilibrium is separating. If heterogeneity in character is high, the equilibrium is partially pooling. In the partially pooling equilibrium, only extreme types can be distinguished. Expected competency is monotonically increasing in the level of education. Supplementary information can reveal personal characteristics, acting as a sign of work productivity.
Author: Streb, Jorge Miguel
Language: English
Topic: Game Theory and Applications
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W105912106