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Avinash K. Dixit

“Countersignaling You would think, based on the previous section, that if you have the ability to signal your type, you should. That way, you differentiate yourself from those who can’t make the same signal. And yet, some of the people most able to signal refrain from doing so. As Feltovich, Harbaugh, and To explain: The nouveau riche flaunt their wealth, but the old rich scorn such gauche displays. Minor officials prove their status with petty displays of authority, while the truly powerful show their strength through gestures of magnanimity. People of average education show off the studied regularity of their script, but the well educated often scribble illegibly. Mediocre students answer a teacher’s easy questions, but the best students are embarrassed to prove their knowledge of trivial points. Acquaintances show their good intentions by politely ignoring one’s flaws, while close friends show intimacy by teasingly highlighting them. People of moderate ability seek formal credentials to impress employers and society, but the talented often downplay their credentials even if they have bothered to obtain them. A person of average reputation defensively refutes accusations against his character, while a highly respected person finds it demeaning to dignify accusations with a response.6 Their insight is that in some circumstances, the best way to signal your ability or type is by not signaling at all, by refusing to play the signaling game.”

Avinash K. Dixit, The Art of Strategy: A Game Theorist's Guide to Success in Business and Life
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The Art of Strategy: A Game Theorist's Guide to Success in Business and Life The Art of Strategy: A Game Theorist's Guide to Success in Business and Life by Avinash K. Dixit
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