Evolution
Handicap Principle
The theory that reliable signals must be costly to the signaler, making them impossible to fake. The handicap itself proves signal honesty.
Biological Context
Proposed by Amotz Zahavi to explain costly ornaments. The peacock's tail is a handicap that only fit males can afford. Stotting gazelles signal they can escape even after energy expenditure. The principle resolves how honest signaling evolves when deception would benefit individuals.
Business Application
Understanding the handicap principle helps evaluate market signals. Truly costly commitments (burning boats, equity stakes) are more credible than cheap talk.