Signaling Theory is a concept in economics and biology that explains how individuals or entities convey information to others through specific actions or traits. It suggests that certain behaviors or characteristics serve as signals to indicate quality or intentions, helping to reduce uncertainty in decision-making. For example, in the job market, a college degree can signal a candidate's competence to potential employers. In the animal kingdom, signaling can be observed in mating rituals, where vibrant colors or elaborate displays serve as indicators of fitness. These signals help potential mates assess the quality of partners, ensuring that they choose individuals with desirable traits. Overall, Signaling Theory highlights the importance of communication in various contexts.