Signaling is a communication method used by individuals or groups to convey information or intentions to others. It can occur in various forms, such as visual signals, sounds, or gestures. For example, animals often use signaling to attract mates or warn others of danger, while humans use signals like traffic lights to manage road safety. In economics, signaling refers to actions taken by one party to reveal information about themselves to another party. A common example is a job applicant obtaining a degree to signal their qualifications to potential employers. This helps reduce information asymmetry in decision-making processes.