Signaling is a method used in communication to convey information or intentions through specific actions, symbols, or behaviors. It can occur in various contexts, such as animal behavior, human interactions, and even in economics. For example, animals may use visual signals, like bright colors or specific movements, to attract mates or warn others of danger. In economics, signaling refers to actions taken by individuals or companies to demonstrate their quality or intentions to others. A common example is job applicants obtaining degrees or certifications to signal their qualifications to potential employers. This helps reduce information asymmetry, where one party has more or better information than the other.