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Seinfeld Economics: The Truth

by Linda Ghent

Signaling is the idea that one party (termed the “agent”) credibly conveys some information about itself to another party (the “principal”). For example, in job-market signaling, (potential) employees send a signal about their ability level to the employer by acquiring certain education credentials. The informational value of the credential comes from the fact that the employer assumes it is positively correlated with having greater ability.


Seinfeld: The Truth

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Jerry is being audited for contributing to a false charity. He contributed because he and Elaine were on their first date, and he wanted to send a signal that he was a generous and compassionate man.

from Seinfeld, Season 3 (1991)
Creator: Larry David & Jerry Seinfeld
Posted by Linda Ghent