IDEAS home Printed from https://ideas.repec.org/a/kap/theord/v73y2012i3p401-422.html
   My bibliography  Save this article

Type composition, career concerns, and signaling efforts

Author

Listed:
  • Chia-Hui Chen

Abstract

A modified version of Spence’s signaling model is analyzed to explore the relationships among the type composition, career concerns, and signal effort levels chosen by agents. We show that an increase in the proportion of high-type agents does not change an agent’s effort levels monotonically. High signaling efforts are induced when the proportion of the high type is in the middle range. Moreover, when the proportion of the high type is small, career concerns increase the signaling effort levels and have a more positive influence on the effort level of a high-type agent. However, when the proportion of the high type is large, career concerns might instead decrease the effort levels. Copyright Springer Science+Business Media New York 2012

Suggested Citation

  • Chia-Hui Chen, 2012. "Type composition, career concerns, and signaling efforts," Theory and Decision, Springer, vol. 73(3), pages 401-422, September.
  • Handle: RePEc:kap:theord:v:73:y:2012:i:3:p:401-422
    DOI: 10.1007/s11238-012-9299-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11238-012-9299-2
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11238-012-9299-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kaya, Ayça, 2009. "Repeated signaling games," Games and Economic Behavior, Elsevier, vol. 66(2), pages 841-854, July.
    2. Andrea Gallice, 2009. "Education, dynamic signalling, and social distance," Oxford Economic Papers, Oxford University Press, vol. 61(2), pages 304-326, April.
    3. Matthews, Steven A & Mirman, Leonard J, 1983. "Equilibrium Limit Pricing: The Effects of Private Information and Stochastic Demand," Econometrica, Econometric Society, vol. 51(4), pages 981-996, July.
    4. In-Koo Cho & David M. Kreps, 1987. "Signaling Games and Stable Equilibria," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 179-221.
    5. James Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    6. Ashenfelter, Orley & Harmon, Colm & Oosterbeek, Hessel, 1999. "A review of estimates of the schooling/earnings relationship, with tests for publication bias," Labour Economics, Elsevier, vol. 6(4), pages 453-470, November.
    7. Bengt Holmström, 1999. "Managerial Incentive Problems: A Dynamic Perspective," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(1), pages 169-182.
    8. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    9. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Gallice, 2009. "Education, dynamic signalling, and social distance," Oxford Economic Papers, Oxford University Press, vol. 61(2), pages 304-326, April.
    2. Theodore Koutmeridis, 2013. "The Market for "Rough Diamonds": Information, Finance and Wage Inequality," CDMA Working Paper Series 201307, Centre for Dynamic Macroeconomic Analysis, revised 14 Oct 2013.
    3. Ishida, Junichiro & Suen, Wing, 2024. "Pecuniary emulation and invidious distinction: Signaling under behavioral diversity," Games and Economic Behavior, Elsevier, vol. 147(C), pages 449-459.
    4. Espínola-Arredondo, Ana & Muñoz-García, Félix, 2011. "Can incomplete information lead to under-exploitation in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 402-413.
    5. Blume, Andreas & Lai, Ernest K. & Lim, Wooyoung, 2019. "Eliciting private information with noise: The case of randomized response," Games and Economic Behavior, Elsevier, vol. 113(C), pages 356-380.
    6. Dadon-Golan, Zehorit & BenDavid-Hadar, Iris & Klein, Joseph, 2019. "Revisiting educational (in)equity: Measuring educational Gini coefficients for Israeli high schools during the years 2001–2011," International Journal of Educational Development, Elsevier, vol. 70(C), pages 1-1.
    7. Dilmé, Francesc, 2017. "Noisy signaling in discrete time," Journal of Mathematical Economics, Elsevier, vol. 68(C), pages 13-25.
    8. Heinsalu, Sander, 2017. "Good signals gone bad: Dynamic signalling with switched effort levels," Journal of Mathematical Economics, Elsevier, vol. 73(C), pages 132-141.
    9. de Haan, Thomas & Offerman, Theo & Sloof, Randolph, 2011. "Noisy signaling: Theory and experiment," Games and Economic Behavior, Elsevier, vol. 73(2), pages 402-428.
    10. Starkov, Egor, 2023. "Only time will tell: Credible dynamic signaling," Journal of Mathematical Economics, Elsevier, vol. 109(C).
    11. Miriam Schütte & Philipp Christoph Wichardt, 2013. "Delegation and Interim Performance Evaluation," CESifo Working Paper Series 4193, CESifo.
    12. Edward P. Lazear & Paul Oyer, 2012. "Personnel Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    13. Andrea Gallice & Edoardo Grillo, 2019. "A Model of Educational Investment, Social Concerns, and Inequality," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(4), pages 1620-1646, October.
    14. Jeitschko, Thomas D. & Normann, Hans-Theo, 2012. "Signaling in deterministic and stochastic settings," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 39-55.
    15. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, November.
    16. Richard Kum-yew Lai, 2005. "Inventory Signals," Microeconomics 0509001, University Library of Munich, Germany.
    17. Sander Heinsalu, 2017. "Good signals gone bad: dynamic signalling with switching efforts," Papers 1707.04699, arXiv.org.
    18. Soeren Johansen & Anders Rygh Swensen, 2021. "Adjustment coefficients and exact rational expectations in cointegrated vector autoregressive models," Discussion Papers 21-07, University of Copenhagen. Department of Economics.
    19. Chaitali Sinha, 2014. "Human Capital and Public Policy," South Asian Journal of Macroeconomics and Public Finance, , vol. 3(1), pages 79-125, June.
    20. Sanghoon Lee, 2007. "The Timing Of Signaling: To Study In High School Or In College?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 785-807, August.

    More about this item

    Keywords

    Noisy signaling; Dynamic signaling; Career concerns; D82;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:theord:v:73:y:2012:i:3:p:401-422. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.