Costly Signals
TL;DR
Handicap signals are costly to produce in proportion to quality (e.g., peacock tails, stotting).
Handicap signals are costly to produce in proportion to quality (e.g., peacock tails, stotting). The signal's cost is the mechanism ensuring honesty - weak, parasitized males cannot grow impressive tails, sustain intense roaring, or survive while stotting.
Business Application of Costly Signals
R&D spending, capital investments, employee compensation above market, generous warranties, and third-party certifications are business costly signals - expensive to produce, signaling quality.