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signalling theory

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    Market Signals Entry #0403

    Why a guarantee is a statement about failure rates

    A company that offers a long warranty is not being generous. It is telling you, in financial language, how rarely it expects to pay.

    Novice
    The hidden part #0403

    Confidence is expressed in liability. The warranty says less about what will happen to the buyer and more about what the company already knows will not.

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    Market Signals Entry #0409

    Why a job title conveys more than a salary

    A title is visible to everyone the holder meets. A salary is visible to nobody. The signal that travels is the one that shapes reputation.

    Adept
    The hidden part #0409

    A salary is private. A title is public. The public signal shapes the market’s estimate and sets the anchor for the next offer.

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