Skip to content. | Skip to navigation

Personal tools

Text Commentary

Seinfeld Economics: The Mango (Faking)
by Linda Ghent `

Asymmetric information occurs when one party has more or better information than the other. This creates an imbalance of power in transactions that can sometimes cause the transactions to go awry.

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.


This Commentary is related to the following Clips:
Seinfeld: The Mango (Faking) by Larry David & Jerry Seinfeld (1993) George tells Jerry about his problems below the "equator", i.e. in bed with his latest girlfriend, Karen, and is concerned that she is faking orgasms. When Elaine enters the conversation, they discuss the issue of "faking" and Elaine confesses that she used to fake orgasms with Jerry when they were dating. Jerry is horrified, as he thought the orgasms were real.