Signalling: The Unspoken Language We Use Every Day

Not having enough information is a problem.

Photo by Nirmal Rajendharkumar on Unsplash

George Akerloff was the first to detail this. In his Nobel-winning paper, The Market for Lemons, he observed that markets with asymmetric information would eventually collapse.

Because only sellers would know the condition of the goods they sold, they could always mask defective…