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Signalling

by Jadrian

Dottie decides to quit right before the World Series, and her coach isn't too happy about it. One of the most salient topics taught in a section on behavioral economics is the idea of ignoring sunk costs. When things get boring or tough, a rational agent may decide to quit. Dugan believes that baseball is a great separating equilibrium and that it shows who's tough and who isn't. If baseball were an easy game then the it wouldn't be a beneficial signal to everyone watching.

A League of Their Own -- Hard Makes it Great

Dugan lectures Dottie on why she shouldn't quit just because something is difficult

from A League of Their Own (1992)
Creator: Penny Marshall
Distributor: Columbia Pictures
Posted by Jadrian
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