3 ms·

Hi, what is market signaling?

• dv_dt 9y ago
  It is how markets use prices as signals to decide what to produce and deliver efficiently. If the pricing of the good if ISP performance is actually hidden from the end consumer, then it muddies the customer valuation of both the game as a product, as well as an ISP as a product. By linking the prices of both in a hidden way, consumers don't have an effective way to make clear product choices which in turn signal to a company that it is producing the right thing (or the wrong thing). If the signals aren't clear, then the market becomes less efficient. The game company is no longer competes or is fully focused to make a good game, and the ISP is no longer competing to produce better network access.