But the signal only works if it is expensive to fake. Cheap signals get copied everywhere by everyone, even by those people you want to filter out.
That’s why some credentials mean nothing and others mean everything.
Markets don’t fail because people are dishonest; they fail because honesty cannot be verified.
Akerlof was one of the first to build a mathematical and theoretical model around it with his used cars example. Sellers know the truth, buyers don’t.
But the signal only works if it is expensive to fake. Cheap signals get copied everywhere by everyone, even by those people you want to filter out.
That’s why some credentials mean nothing and others mean everything.
I dug into the research and examples behind this idea in my latest article.
🔗 https://t.co/uX5Z06TSQb
Curious what others think.
If you could fix only ONE thing tomorrow, what would it be?
- Fraud detection
- Screening speed
- Consistency
Everyone says tenant screening has a fraud problem.
I think they're solving the wrong problem.
Fraud isn't the problem.
It's a symptom.
The best screening systems optimize:
- Verification
- Speed
- Consistency
One statistic completely changed how I think about this. 👇
"This is why sports are the best form of reality TV". Witnessing this fierce final between @carlosalcaraz and @janniksin has to be the one of the best and craziest (in all the perfect ways) @rolandgarros matches I have seen. Truly magnificent!
@garghimanshu_ McLaren 1-2, Verstappen 3rd. If it rains then Russell on the podium. Leclerc on his own a strong contender but not banking on Ferrari’s strategy LOL