137 karma · joined April 10, 2017
Which is the very problem "rational expectations" modeling [0] is trying to avoid. Rational expectations models don't 'know' anything (systematic) that the actors in it don't.
Capital and labour are very standard notions in economics (and go back at least to Adam Smith).
or
Sketch of The Analytical Engine Invented by Charles Babbage; By L. F. MENABREA of Turin, Officer of the Military Engineers; from the Bibliothèque Universelle de Genève, October, 1842, No. 82; With notes upon the Memoir by the Translator ADA AUGUSTA, COUNTESS OF LOVELACE
https://www.fourmilab.ch/babbage/sketch.html
Lovelace's notes start about one third of the way down the page.
It is possible for the same action send a positive signal when done by some people and a negative signal when done by others. Specifically there can be 'contersignaling' [0], which is basically signaling that you don't need to signal.