I think it is worth preserving a distinction between the specific kind of signaling Patrick describes and a weaker definition, because "true signaling" explains a specific phenomenon: in equilibrium, there seems to be too much effort expended on something, but everyone is acting in their own best interest. "High-quality" people do something to prove they are high quality, and "low-quality" people imitate this behavior. If education is a signal, people seem to get "too much" education for what their jobs require.
As in an exam problem I recently heard about: Female bullfrogs prefer large male bullfrogs. Large bullfrogs croak louder. In the dark, small bullfrogs croak loudly to appear large. To signal that they are the true large frogs, large ones croak even louder. When everyone is croaking as loudly as they can, croaking quietly makes a frog look incapable of croaking loudly and therefore small. Result: swamps are really noisy at night.
Or, according to this paper, people "expect a high-quality firm to undertake ambitious investments". Investment is a signal of quality: low-quality firms invest more ambitiously to look high-quality. Then high-quality firms invest more to prove they are the true high-quality firms. Result: firms over-invest.
In this sense, you can also signal that you are serious about a friendship, job, or significant other, but only where your resources are limited. An expensive engagement ring is a good signal of your seriousness -- hence, expensive diamond engagement rings instead cubic zirconium. Or, applying to college and sending a video of yourself singing the college's fight song is a good signal that you will attend if admitted, and writing a gushing essay is a cheap imitation signal of that devotion. Hence, high school seniors look like they spend way too much effort telling colleges how devoted they are.
So you might use signaling to explain why "too many" people get "useless" degrees studying classics, or why swamps are "too loud", or engagement rings are "too expensive". I don't think it's true that too many people pretend to be Republicans, or too many birthday cards or sent.
I think it is worth preserving a distinction between the specific kind of signaling Patrick describes and a weaker definition
What Patrick refers to is called costly signaling in evolutionary psychology, and I believe in general.
The word 'signalling' is often used in Less Wrong, and often used wrongly. This post is intended to call out our community on its wrongful use, as well as serve as an introduction to the correct concept of signalling as contrast.
Why do peacocks grow such large, conspicuous tails? Why do people take degrees in subjects like Philosophy or Classics, despite these subjects having no obvious practical value? Why do people take pains to avoid splitting infinitives, even though everyone can understand split infinitives perfectly well?
These activities seem completely pointless, costly and difficult. Paradoxically, it is probably this very difficulty that serves to explain why they are done at all. Take the peacock’s tail. A peacock that has to struggle to survive while dragging around a conspicuous tail is clearly at a disadvantage. But if he can continue to survive, then clearly he must be pretty strong! So the peahens may choose to mate with him rather than the peacocks with less conspicuous tails, whose survival is thus a less impressive feat.
As for classics, getting a degree in classics may be pointless, but it’s also difficult. It requires one to read and memorize vast chunks of text, and to translate these texts between Greek, Latin and English precisely. So a person who has a degree in classics and got a good mark must be a person with a good memory who is able to execute tasks precisely. Qualities extremely useful in a civil servant, the occupation where many budding classicists find themselves. The rule that you mustn't split infinitives derives from Latin where splitting infinitives was impossible. So a person who doesn’t split infinitives is more likely to be a Latin scholar, with the qualities of class and intelligence that such a thing implies.
Even the decision to go to the moon might be explained in this way. Carl Sagan made the point that a rocket capable of going to the moon is certainly capable of reaching Moscow. And it’s clear why Kennedy in the middle of a Cold War would want to demonstrate such a thing.
When we explain a behaviour in this way, we say that the behaviour is signalling. The agent does not perform a task for its own sake, but to show others that they possess some important quality such as strength, a good memory, or military supremacy. The key features that a behaviour must possess for signalling to be a good explanation are as follows.
Unfortunately, not all proposed explanations involving the word "signalling" take care to establish these four properties. Our community seems especially guilty of this. The main misunderstanding is that it uses ‘signalling’ merely to denote behaviours that trick rubes in to thinking you’re good. This raises the question of why there are rubes to trick in the first place. Why haven’t more savvy competitors eaten their lunch? Here is an example of someone thinking that you can signal to rubes:
Here the rube is the managers bosses, why are they so stupid as to think that mismanagement is evidence of superior management qualities? Why haven’t these idiots been sacked? (This probably does occur in real life, but I don’t think "signalling" is the right term to describe it. I would describe it as "pandering to the prejudices of idiots".)
Another comment which falls in to the same trap:
The trouble here is that it postulates stupid customers, just like the previous comment postulated stupid bosses. A much better test of butcher quality than flashiness is how good the meat tastes and how much is produced. An intelligent customer can probably test this fairly easily, and would not buy meat from the flashy butcher.
These uses of "signalling" at least have the advantage that they’re explanations along economic lines. The difference between signalling and pandering is the intelligence of your audience. What’s worse is that some people in our community use the word "signal" to mean "show" or "pretend".
An example:
A low status person that knows what they’re talking about? I suppose such things are possible... Seriously though, "signalling" is being used to mean "tricking people in to thinking that you are". Either you know what you’re talking about or you don’t. At least one of the two options given in the quote will result in you trying to trick someone. We’re signalling to rubes again.
Worst of all, some people use "signalling" as a version of ad hominem. "You just say that to signal." A comment to Overcoming Bias’s controversial post "Gentle, Silent Rape" reads:
Let’s go through the criteria again:
This clearly doesn’t apply. The behaviour is easily explicable. Comments might be made out of genuine disagreement, or (more cynically) to intimidate Hanson and others away from making arguments like these in the future.
The quality proposed was "status", but outrage is cheap. Any fool can be outraged at a blog post mentioning rape. It doesn’t require exceptional intelligence, charisma, wealth, or feminist credentials. You could be homeless and leave an outraged comment just by going to a public library. You don’t even have to read the post.
Well this seemingly applies. People do want to be thought of as being against rape, and high status. The only trouble is that many of the comments are left anonymously.
This does not apply at all. Even a convicted rapist could leave an outraged comment.
Clear thinking requires making distinctions. Using the word "signalling" to mean "pandering", "tricking people", "showing", or "toeing the party line" does nothing but lead to confusion and muddle. If you’re going to use jargon, use it in its precise sense. That’s what is jargon is for, communicating precisely. Next time you feel like using the word "signalling", ask yourself whether the four criteria apply. Remember: You can’t signal to rubes.