Measuring the efficiency of stochastic signals of product quality

This paper explores how consumers combine stochastic signals, hence differentiating it from a game theoretic approach, of product quality from a search theoretic perspective. Individuals will tend to progress towards more cost efficient signals as they get older. Based on this analysis signals are ranked both in terms of cost effectiveness and signal precision. (C) 2001 Elsevier Science B.V. All rights reserved.