The topic for Thursday's class

We will talk about signaling (the person with the private information taking a costly action to communicate what the information is) and inference (what the uninformed party interprets from the signal).  There will not be a PowerPoint for this.  But if you have read the book Moneyball (or even if you have just seen the movie) that might be good preparation.

1973 job market signalling.pdf via kwout

I will use this piece in our discussion of inference.  It should be relevant to you.