How do you test for the validity and reliability of signals and screens in empirical studies?
Signaling and screening are key concepts in game theory, the study of strategic interactions among rational agents. They refer to the ways that agents communicate their private information or hidden characteristics to others, and how others interpret and respond to those messages. In this article, you will learn how to test for the validity and reliability of signals and screens in empirical studies, using examples from different fields and applications.