New Books in Economics cover image

Sam Tatam, "Evolutionary Ideas: Unlocking Ancient Innovation to Solve Tomorrow's Challenges" (Harriman House, 2022)

New Books in Economics

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Signalling in the Real World

In his new book, David Walliams explores the psychological principle of signalling. Signalling is when someone knows more than another party and it's important to show that you're willing to pay for this information. The cost of a signal can be seen as being related to its honesty - so if poison arrow frog was actually delicious, it would just walk around with it in bright yellow blazono disregard for safety. And we can start to see this in our everyday lives by looking at companies like octopus energy who say they don't have a short term agenda but are really trying to build long-term trust.

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