Gryzzl wants to bring in a celebrity to help distinguish the company so that they can win the bid. Tom and Donna list other instances where celebrity ownership or endorsement have helped companies. Celebrity endorsements may serve as a signalling device for companies.
See more: advertising, celebrity endorsement, monopolistic competition, product differentiation, signalling
Ann and Chris decide not to buy an engagement ring because they think it is an unnecessary expense when they could do other things with the money. Engagement rings are often considered signals in the dating market that one partner is unavailable. The couple watching the exchange realize they could buy a house instead of buying a ring.
See more: opportunity costs, preferences, signalling, tradeoffs
Andy has decided to take a class at the local community college and April is helping him look through the catalog. Ron encourages him to take a course in a new subject and broaden his horizons, but April thinks he should take an easy class to get an A.
See more: education, effort minimization, human capital, incentives, labor, signalling, skill building