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Charity is very small percentage of our life. We can also internalize our signalling.

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.




> If you look at how people act in work, family and love life, signalling explains 90% of it.

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 should be interested in reading some examples of catastrophes causes by adoption of prediction markets.




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