# kaal:claim:6421319-020

**Claim.** 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.

**Type.** condition  **Support.** argued

**Holds when.**

- conditional on capability being directly and costlessly observable

**Source quote.**

> 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, page 19

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

**Verify.** sha256 of source PDF `0f4f68e56ee48bb8b2d73d3ab7fd96fa572e76c195694ffa740360704c1b172d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20The%20Collapse%20of%20Scarcity%20Economics.pdf

**Failure mode.** Signaling Redundancy  (family: rule-obsolescence-and-ossification)

**Topics.** economics

**Keywords.** signaling, spence, screening, verification, information-economics

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