Four Costly Signaling Mechanisms
Kai Quek
American Political Science Review, 2021, vol. 115, issue 2, 537-549
Abstract:
Two mechanisms of costly signaling are known in international relations: sinking costs and tying hands. I show that there exist four mechanisms of costly signaling that are equally general. I develop the new mechanisms of installment costs and reducible costs and contrast them with sunk costs and tied-hands costs. I then conduct experiments to test the four signaling mechanisms. I find that each mechanism can improve credibility when the costs are high, but reducible costs can improve credibility even when the costs are low.
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:cup:apsrev:v:115:y:2021:i:2:p:537-549_13
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