Signaling Quality and Intent

Identify situations of asymmetric information (e.g., you know your quality, but customers don't).

Distinguish between a credible 'signal' and non-credible 'cheap talk'.

Analyze how actions like premium pricing and warranties can signal high quality to customers.

Apply signaling principles to your branding and marketing to justify a premium position.

Evaluate when to reveal versus conceal information about your business plans.

Interpret competitors' actions (e.g., a major capacity expansion) as potential signals about their strategy.