Signaling as a Service
julian.digital
julian.digital
For instance, while most donations aren't anonymous, I'd wager most people don't know how much their friends donate and who to. Sure, the organization knows, but unless you go out of your way to tell people that you gave $50 or $500 or $5000 to MSF last year, nobody will know. It's not an anonymous donation, but you're not signalling to anyone unless you stick a bumper sticker on your car or whatever.
They unlocked the attention economy.
We consumers pay for facebook with our eyeballs, not our wallets (facebook then is really good at selling specific eyeballs to specific wallets on the backend).
In the limited scope of the attention economy, then sure, social signaling could be the key metric of engagement. Facebook monetizes it by matching your signaling with specific advertisers, and Fortnite monetizes it by letting you customize the means of your signaling.
However, in the broader scope of the human experience, signaling explains very little...
Sure, you have a nice coffee table book, but you read Dickens to get lost in the story. Or you read a physics textbook to understand the universe.
You might go to church to show your neighbors you're a good god-fearing churchgoer, but you also do it to get closer to god or however you understand the universe.
You might go on a vacation to a far-off land to get a selfie, but you also do it to ponder how this park bench is older than your country and contemplate the lives and cultures of the people who have sat there since.
Yoga pants signal you do yoga, but you also do yoga to quiet your brain or meditate.
So sure, signaling theory is useful to explain all the cynical, vapid, and narcissistic tendencies we have (as well as the software companies that have become successful by industrializing the exploitation of those tendencies -- not saying they're not real!), but it certainly doesn't prove "too much". Rather, all the things it doesn't explain are the parts of the human experience that are not tied to the attention economy.
To use an example: If I go to work wearing a nice shirt that is cleaned and ironed, signalling theory would say I'm showing I can afford nice clothes, and to keep them looking nice. But if I go to work wearing a worn out tee-shirt I got for free from a vendor, signalling theory would say I'm signalling tech worker group membership, and that I have a modern trendy employer, or even that I'm so confident in my skills that trivial matters like clothes are inconsequential.
Likewise, I travel to work by nice car? Signalling wealth. By economical car? Signalling good financial sense. By running or bicycle? Signalling fitness and free time. By public transport? Signalling virtue and environmentalism.
If no matter the input, signalling theory would say "aha, exactly as expected" then can signalling theory ever be disproven?
And it's not bad to sometimes just think about yourself. It's just when it becomes a self-fulfilling prophecy "I need status/affirmation in order to feel fulfilled" that it's shifts towards being obnoxious.
Signalling explains a lot. Since we are social animals where the survival and status of the group is important, it should explain a lot.
But the commenter points out that most charity is in practice anonymous, which is a serious challenge to any framework that presupposes one's actions are publicly know by others.
It's like the creators of this theory only consider the charity of celebrities, which indeed do it mostly for signalling, and forgot the vast majority of humanity that doesn't get their actions described in the papers...
If you look at how people act in work, family and love life, signalling explains 90% of it.
Hanson became interested in signalling because his work in prediction markets. Prediction market well implemented seems to work and produce good actionable information. Companies were eager to adopt them. In practice they are catastrophe because they reveal how the choices being made are based on other things than what is said. The whole social structure in workplace is destroyed if the positions and knowledge people signal is revealed to be not true.
But it equally explains why I don't buy a car (because I want to signal that I'm not the sort of person who would) as much as explains why I do by a car (ditto). So of course it "explains" 90% of how people behave, but only after the fact. Which is suspicious.
I want to live in a world in which more time is spent increasing merit and competency rather than advertising some sort of proxy. I understand that both merit and competency are impractical to judge without any sort of easily identifiable signal, but the inaccuracy of a lot of those signals and the amount of time, money, and effort wasted on them is kind of mind numbing.
There's also going to be a lot of bias in what is visible to you here - you're only going to see the people who loudly boast on Instagram about say donating to charity or using eco friendly cups or whatever - because of course the people that just do it quietly because they care and don't boast aren't going to be noticeable.
Maybe there's 10 people who aren't signalling for every one you see, but you have no way of knowing because they're not signalling.
The non-signalling 10 others are then cast as "following" the trends set by a signalling one.
But even by quoting that, I'm still playing (albeit by attempting to jump out into the meta game).
So the only ones who are actually not playing are the ones who are clicking away from this vapid comment page and moving on with their lives.
I believe the only way to stop is to generate white noise - by sending signals so mixed that those who observe stop trusting them
https://www.theonion.com/area-man-constantly-mentioning-he-d...
Area man doesn't signal.
^ And this one isn't?
I was asking in part because I was skeptical about the claim that most are deluded and unaware of their own signaling. I think more people are aware of it than this article would suggest, and that they just don't talk about it. But I don't have any evidence either way.
The idea of "hiding it" seems way too loaded, because it's usually in a context with an implicit value judgement.
I suspect that there are multiple factors of various importance going into every decision, and the observer is reducing, reprioritizing, and judging it against their own opinions.
Perhaps that book or some other source offers a more rigorous analysis.
Signaling is taught in Game Theory 101 in undergrad econ. Varian, Pyndick etc probably have plenty of "more rigorous analysis".
Furthermore, one of the authors of the book also authored this blog post, which I hesitate to summarize, but yeesh: http://www.overcomingbias.com/2018/04/two-types-of-envy.html
Someone on the outside looks at these signals and shakes their head, but it's just a bug in human nature.
Sounds to me like you object to false signalling, rather than signalling in general. Just think of all the positive forms of signalling like giving someone a gift to indicate that you’re thinking about them. Is that repellant?
I regret my original wording. I think I should have jumped directly to my main question about whether or not people are as unaware of signaling as the article suggests.
does such a world exist?
That kind of talk only an Economist can come up with, and sell to folks who have never heard about a subject called Psychology.
Economists are a bunch of people, who only recently discovered human behavior needed to be taken into account, to explain everything inexplicable about the economy. That mistake is how we end up with Alan Greenspan standing around expressing "shock and disbelief" at the 2008 meltdown.
If Signaling explains everything about human behavior what are the 418 books ranked above (the one in the article) in Amazon's Psychology category talking about?
> In fact, Hanson believes that “well over 90 percent” of human behavior can be explained by signaling. Whether or not you agree with that exact number, I think it’s an interesting thought experiment to look at a specific behavior and think about what the hidden signaling subtext of that behavior might be.
You do realize the author is citing someone else making the assertion you disagree with? The next sentence validates this interpretation. Your comment is a textbook straw man against the author.
Also, your bit about economists sounds incredibly inaccurate. No, economists didn't randomly realize human behavior needed to be taken into account one day. Since the beginning, the people studying economics already knew that it emerged out of the intricacies of human behavior. Simplifying a phenomenon for the purposes of modeling it is how we study things initially. We iterate on those solutions as we go.
(Though in this two-part theory I'm obviously hiding them from myself)
This article doesn't seem to have a lot of real insight, other than to loosely (and half incorrectly) justify various beliefs and misunderstandings the author has about selected social interactions. I guess that's fine, but doesn't seem particularly useful.
> So how are you going to distribute the signal message of your sneakers? You simply wear them where other people can see them. The obvious constraint here is that your signal distribution is limited to things you can display in public. This is why people are willing to spend hundreds of dollars on shoes but not on socks.
(This is largely anecdotal, but) 7-10 years ago, a game having a cash shop of _any_ kind caused it to be shunned by a large portion of the (US) gaming community. However, the model proved so effective (particularly with the "non-traditional gamer"), that it eventually became the norm. The market shifted that way as it grew and now the community is resigned to it. Don't get me wrong, there are still a multitude of games that follow the traditional model, but those aren't the cash cows of the industry because the market is simply smaller.
With Fortnight, I feel that Epic succeeded because they took a known formula, applied it to a budding, ultra-competitive genre, gave it an unassuming art style that had mass appeal, and made the game play simple and approachable.
The shift hapenned in 2010s, at the same time as free2play gmaes moved west. For example, World of Tanks had some pay2win shop mechanics, but the core of monetization was on purchasing faster progress: you would spend less time grinding or new gear, but once you got into battle with other players matched to you, you wouldn't get any advantage. Such game design focus was already pretty risky and revolutionary at the time when other free2play developers considered non-paying users as cannon fodder for paying ones, and it paid back with a much higher % of paying users and user loyalty, although the game did have a significantly lower ARPPU, relying on the mass of paying subscribers instead of a tiny amount of whales.
That doesn't bear out with what I see. Looking at a dataset of 2.8 million donations through our site, roughly 20% are anonymous. That's not the majority, but it's much more than "hardly any."
This just seems like basic logic though? If you want to be X and Y provides the means, then it makes sense to do it right? There can't be a hidden agenda if you're actively pursuing it
It's such an odd dynamic but I'm thankful for it since it gives me more information about a guy.
So the signalling on Tinder is your profile - pictures and description, they monetise the ability to signal to more people. And, as you alluded to, they absolutely don’t make that action public since amplifying your signal on a dating app reeks of desperation.
If one wants to have Tinder Hot badge you need to go on five dates and be rated 5 stars for each. You would be signalling you are attractive and others think so. (I expect this is already done through some count or left / right swipe ratio)
(I can see that leading to some horrible coercion issues so I would oppose it but you get this idea)
This sounds like a random interpretation, it might just as well be seen as "dating is important enough for me that I'm happy to spend money on it".
People apparently get perceived value from super likes etc, so I have some doubts it actually hurts their chances.
My personal experience (more than a few data points) suggests that that's not true. Tinder is full of boring, commodity thirst, and differentiation matters a lot.
When I became aware of my signaling habits I tried to reduce my signals, only to find that there's no "opt out". If you need a car, no matter what car you drive it will send a signal. No car sends a signal. If I want to wear the same plain clothes every day like a uniform, this is still participating in signalling. It's like mistaking 0 for null, I've signaled that I care more about pragmatism than fashion, but it's still a signal. While I'm sure the book recommended in the article is fascinating, I think I shouldn't read it because I won't be able to get outside my own head for a long time if I do.
The author isn't looking hard enough: professional software frequently goes for many thousands of dollars.
There's a difference between a high price tag and a high price tag for the sake of signaling wealth / social status. I wouldn't classify professional software as luxury goods (such as jewelry, watches, etc).
But agree that I should have phrased that sentence differently.
One cannot usually show off software like hardware. In this WFH world that could change. But for now I don't see people paying top dollar for B2C software until there is some visibility.
It would be interesting to see a dataset of people's t-shirt collections mapped against their consumer preferences. My two cents.
Linux was a great example, where originally you could signal your technical skill by just having it installed at home. Today the equivalent would probably be having a functional language on your CV. It's a costly signal in that you need to make a non-trivial investment in learning it to be able to claim it. It also says that what you perceive to be power is esoteric knowledge with intelligence, and you are looking for people who meet that level. Signals are also tells.
What fashion companies did is recognized powerful people, and watched how they signalled to one another, and then sold that to everyone else, while flattering the powerful ones enough to adopt them. Ralph Lauren and Tommy Hilfiger made billions on that.
Luxury goods like say, a handbag or a BMW 3-Series, are things you can pay enough for to show that you have money, or in the latter case, credit. If you think money and credit represents power, you will signal that to other people who think the same. Some people think an Ivy education or an advanced degree is power, which it can be in political and finance circles, but not in say, car racing or sailing circles.
Facebook really was the original online luxury good, as it showed you believed in ivy schools, fame, technology, and gossip, but now it's the same as a hollowed out haute couture fashion house owned by a conglomerate that makes its money selling perfume in big box drug stores and airports.
Apple is a luxury company that sells tech, as their real product is privacy and a unified brand experience, and not selling users to advertisers like almost every other platform out there. I think they have risk under Cook's vision as he's just not sexy enough to carry the brand much further. You can see it with his whole push with old celebrities and wholesomeness, I think the lack of eros makes them vulnerable.
Twitter seems to be trying to upgrade its brand to a luxury product, with the opportunity to be a channel for infinite minor status upgrades beyond the blue check. If you can persuade hundreds of millions of people to put up with the character limit and whole culture of the place, it's like the indignity of economy class in airlines, where people will pay stupid amounts of money for small mercies.
Signalling is a rich enough metaphor to capture dynamics in pretty much any human endeavour. Such an interesting area.
please link to your old fashion writing - if they are as good as this Inwoukd love to read some.
I'd also argue that one can't simultaneously write well, not be pseudonymous, and work for a living, because what you hold in reserve to remain employable accumulates as pulled punches in your writing, and while nobody else may know, for an artist the shame can become unbearable. :)
Weak pseudonymity mitigates that somewhat.
Personally, I'm impressed. There's depth and insight here. I plan to buy and read the book.
[1] https://medium.com/conversations-with-tyler/robin-hanson-tyl...
`I would say if you have a project with a deadline today, quite often, that goes badly. That is, you’ll have reviews of the project, and people will say, “Yes, of course we’re going to make the deadline.” Then finally the deadline comes, and you don’t make the deadline, and you’ve failed.
This happens a lot, and if you ask people, “Why does that happen?” they often say, “It was because they wouldn’t listen to us about the problems with the project and all the things going wrong, and they kept saying it would work.”
If you turn it around and look at it from the guy running the project’s point of view, they’re thinking, “I might fail on this project. It might not make the deadline. What will my excuse be? I need a good excuse.”
Their favorite excuse is usually, “Everything was going fine until all of the sudden, something came out of left field. No one could have seen it coming. It’ll never happen again. It knocked us flat, but you don’t need to hold anybody accountable or prepare or change it in any way because this was a one-time event.”
In order to make that excuse work, you need everybody to say “It’s going fine” until all of a sudden, it doesn’t.`
"Fortnite has seen even greater levels of financial success: In the last two years combined, the game has brought in more than $4 billion in revenue – and like Tinder, it too monetizes primarily with signal amplification."
[...]
"In contrast to mobile games however, Fortnite is also free to win. None of the in-app purchases available impact the core gameplay. You can’t buy more powerful weapons or stronger armor that give you an advantage over other players."
[...]
"Fortnite’s monetization model is based on cosmetics: The skin your character wears; the looks of your glider and the tools you use; the way your character dances (emotes) – all of these are signaling amplifiers with different signal messages to uniquely express yourself in the game. And you have to purchase them."
I do not care what people think of me. To wit, I choose to live in a place (for various reasons) where I deal with racism on a daily basis. It's hard to care about status when the average person around you is ignorant enough to believe they're on the winning side of some kind of race math.
I do care what is attached to my body or inhabits my personal space. I use a Mac mostly because it looks good. I drive a BMW because of the level of trim inside. Ditto various designer clothing brands.
My Submariner is almost never off my wrist and is honestly one of my favorite (non-human) things. It's built like a tank, is appropriate for any occasion and yes, is more accurate than I need.
As a watch person I also see the value of a Casio (as do collectors) or an Apple Watch. But I only have one watch slot on my body and my favorite happens to be a Sub.
I do not evaluate people by their watches. I know lots of people don't value the things I do, may not like watches or may not care. All I learn by looking at someone's watch is whether or not they're also watch people.
Often, if someone is wearing a watch that costs 4+ digits, there's an interesting story behind it. They may have bought it to celebrate something or it may be one of a collection. I recently made a friend after asking him about his AP. Turned out he bought it towards the end of his first career, which was in the same area as my first career.
There was a time when a mechanical watch was near the pinnacle of technology. Watchmakers were the "rocket scientists" of their day. A lot of iconic watches have really interesting histories that can go back over 100 years.
They're still at the pinnacle of craftsmanship and aesthetics. They're the opposite of general, disposable consumer culture. They're built to last decades, hold their value well and are often multi-generational. They're green.
Investing in a mechanical watch today helps keep that tradition alive. If your reaction to a Rolex is eye rolling cynicism, you're poorer for it.
This is why popular things cost more money. It's almost like the mere fact that an active market exists increases my probability of participating in it.
In other words: what do you mean "we", weirdo?
It sure seems to be able to prove way too much. Once a theory is flexible enough to explain nearly anything that happens, then maybe it's not actually a useful theory.
It can explain things you buy, but it can explain things you don't buy (you're signalling that you're not the sort of person who would spend $X for Y), it can even "explain" things you do that nobody ever sees- because your brain still considers what signals you might be sending even when nobody's watching. Marvelous.
Possible that there's a narrower hypothesis, or someone that uses it to accurately predict systems and behaviours. Would like to see it in that case.
Also, it aligns with my guilty belief/fear that this paper is onto something:
Chasing the Rainbow: The Non-conscious Nature of Being https://www.frontiersin.org/articles/10.3389/fpsyg.2017.0192...
Basically, the paper hypothesizes that all of conscious experience is just an artifact of the messaging layer between the real players -- our subconsciouses -- aka the geometry of our neural connectomes. (my spin)
tl;dr - Consciousness is pretty much just CapnProto or TCP/IP, which we happen to perceive as meaningful, when it's really just the chatter of subconsciouses shaking the air between themselves in complex ways, to signal things about the structures within.
And the next question: Communicate about what? Maybe just finding and gathering and converting structures with high degrees of symmetry out in the milieu. Like attracts like. Similar structures self-persist and reinforce one another. If similar enough, they can be merged and together sustained with the least energetic