Competitive market signals are conceptualized as announcements or previews of potential actions intended to convey or to gain information from competitors. This paper develops a set of propositions based on research in economics, social psychology, and marketing on the risk/reward trade‐off in signaling, the receiver's signal interpretation, and the receiver's reaction alternatives. The overall objective is to develop a research agenda toward a theory of competitive market signaling.
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Heil et al. (1991) studied this question.
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