Silver Signals: Twenty - Five Years of Screening and Signaling

摘要

WHY IS IT so hard to get a good price on a used car? Why is the annuity market so thin? Why do firms offer lower premiums per unit of coverage to in - surees who accept deductibles? Why do firms continue to pay dividends, evne though shareholders are subject to dou - ble taxation? Under what conditions can a monopoly profitable deter entry by set - ting a low "limit price" rather than the monopoly price? These are just a few of the vast array of questions that economic theory was in no position to anawer until the development of new theoretical foundations.