The C-terminal segment of Smo binds Cos2, and Smo is stabilized from degradation

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Responder, 

the cell or tissue being induced.

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Cells of the responding tissue must have both, 

A receptor protein for the inducing factor 

The ability to respond to the signal

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Competence 

The ability to respond to a specific inductive signal

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Reciprocal induction occurs when the two interacting tissues are both inducers and are competent to respond to each other’s signals.

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The development of the vertebrate eye is a classic example used to describe the modus operandi of tissue organization via intercellular interactions.

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In the initiation of the vertebrate eyes, paired regions of the brain bulges (optic vesicles, act as inducer) out and approach the surface ectoderm (act as responder) of the head.