  This paper characterizes informational outcomes in a model of dynamic
signaling with vanishing commitment power. It shows that contrary to popular
belief, informative equilibria with payoff-relevant signaling can exist without
requiring unreasonable off-path beliefs. The paper provides a sharp
characterization of possible separating equilibria: all signaling must take
place through attrition, when the weakest type mixes between revealing own type
and pooling with the stronger types. The framework explored in the paper is
general, imposing only minimal assumptions on payoff monotonicity and
single-crossing. Applications to bargaining, monopoly price signaling, and
labor market signaling are developed to demonstrate the results in specific
contexts.
