The Peacock's Test
A four-tier framework for signal verification that helps leaders design honest signals that resist skepticism and verify incoming signals to avoid exploitation.
A four-tier framework for signal verification that helps leaders design honest signals that resist skepticism and verify incoming signals to avoid exploitation. Based on biological signaling principles.
When to Use The Peacock's Test
Use when evaluating organizational claims (marketing, investor communications, partner claims) or designing your own credible signals. Applicable for signal audits, trust assessment, and communication strategy.
How to Apply
Tier 1: Index Signals (The Peacock's Body)
Physically tied to reality - impossible to fake. Examples: Audited revenue, profit margins, physical scale, legal structures, regulated disclosures.
Questions to Ask
- Can this be audited/verified independently?
- Is this tied to physical or legal reality?
Outputs
- High trust signals
- Verified factual claims
Tier 2: Costly Signals (The Peacock's Tail)
Expensive to produce - only the fit can afford them. Examples: R&D spending, capital investments, above-market compensation, generous warranties, third-party certifications.
Questions to Ask
- Does making this claim cost us something?
- Do costs correlate with claimed quality?
Outputs
- Moderate trust signals
- Credible commitments
Tier 3: Conventional Signals (The Peacock's Display)
Kept honest by social enforcement - cheaters get attacked. Examples: Brand reputation, customer reviews, industry awards, partnerships, endorsements.
Questions to Ask
- Is this enforced by reputation/reviews?
- What are the enforcement mechanisms?
Outputs
- Variable trust signals
- Reputation-dependent claims
Tier 4: Cheap Talk (The Peacock's Cry)
Costless to produce - requires external verification. Examples: Mission statements, values statements, marketing slogans, subjective claims ('world-class,' 'industry-leading').
Questions to Ask
- Is this just words without backing?
- Can this be verified?
Outputs
- Low trust signals
- Aspirational statements