Abstract
This paper examines the relative efficiency between overt and covert marketing signals. Information for the study was generated from a game-based experiment involving airline pricing along a single route using 24 student teams from undergraduate advanced marketing classes at a large midwestern university. Overt signalers (verbal or published signals) are shown to have higher levels of profits and reputation than do covert (actions or activity alone) signalers. The use of market signals by firms within an industry is positively related to the profitability of the industry and its individual firms. The marginal contribution by the addition of another signaler to the industry is significant
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