Conflict in Marketing Signals

The effect of a marginal signaler to the efficiency of the industry indicates the higher the number of signalers, the higher the profits for h e firm and the industry. The marginal contribution by the addition of another signaler to the industry is significant. However, there appears to be a negative incentive for a firm to be the only signaler within an industry. This "Lone Man Out" puts a firm at a competitive disadvantage to the other firms wilhin its industry. In this study we seek to confirm or disconfirm this finding and attempt to hypothesize why this should be so.