kaal:claim:6421319-020

Costly signaling through degrees, warranties, bonding, and credit scores becomes redundant when direct verification is instantaneous and free, and the Spencian signaling game has no moves left when every agent capability is directly and costlessly observable.

Source quote, verbatim

When every agent's capability is directly and costlessly observable, the signaling game has no moves to make.

From

Wulf A. Kaal, The Collapse of Scarcity Economics (2026), V.B. Spence's Signaling Costs at Zero, p. 19
https://ssrn.com/abstract=6421319 · source PDF

Cite as

Wulf A. Kaal, The Collapse of Scarcity Economics (2026). SSRN: https://ssrn.com/abstract=6421319

Holds when

conditional on capability being directly and costlessly observable

Classification

conditionsupport: arguedfailure: Signaling Redundancyfamily: rule-obsolescence-and-ossificationeconomics

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