SOURCE PRINCIPLES
- Signals differ in how costly they are for an incapable party to imitate
- The receiver interprets evidence under uncertainty
- A signal must be relevant to the decision, not merely impressive
STRATEGY TRANSLATION ROOM · 12 / 13
Michael Spence
Signalling under information asymmetry
LIVE TRANSLATION INSTRUMENT · EDUCATIONAL MODEL
Change the condition, not the history.
The four axes use disclosed visitor inputs. Geometry shows emphasis only; it is not a win score or claim about the original thinker.
ACTIVE STATECALIBRATINGsignal credibility · evidence proximity · decision relevance · imitation difficulty
signal credibilityPRIMARY CONDITION
HISTORY & BOUNDARY
Read the source before borrowing the idea.
Spence’s economic work examined how a better-informed party communicates information to a less-informed party. In bids, private competence is strategically absent until it becomes relevant and credible evidence.
Michael Spence and market signalling · Nobel Prize ↗PROCUREMENT TRANSLATION
- Replace adjectives with named people, artefacts, baselines, references and commitments
- Place proof beside the claim it supports
- Select evidence that resolves the evaluator’s particular uncertainty
WHERE THE TRANSLATION STOPS
Credentials and prestige can become empty theatre when they do not evidence the contract requirement.
No historical text overrides procurement law, truthful evidence, equality of treatment, confidentiality, professional ethics or delivery reality.
NEXT TRANSLATION ROOM
W. Ross Ashby
Cybernetics, regulation and requisite variety