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- Why do people spend so much money on things that aren’t much better than the cheap versions?
- Why do people who study ancient Greek get good jobs that don’t involve reading ancient Greek?
- Signaling means expenditures of time or money whose purpose is to convince others of something.
- A university education signals the ability to learn. The education need not be useful in itself to be helpful in signaling. The best subject matter for signaling is something that is easy for fast learners and difficult for slower learners.
- Signals are interpreted by asking, “What kinds of people would make this choice?” while understanding that the person makes the choice hoping to send the signal.