The Paradox of Waste
How costly signals of status, quality, and fitness shape economics, biology, and society.
Economics
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Veblen Goods
Demand increases with price. The high cost itself becomes a signal of exclusivity and status.
Social Value = Price - Utility
Labor Markets
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Spence's Model
Education often acts as a credential rather than skill-building. It's an "obedience test"—costly signals prove productivity and conformity to employers.
check_circle "Screening for compliance"
check_circle "Screening for compliance"
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Credentials Over Skills
Biology
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Handicap Principle
Honest signals must be costly. The peacock's tail is a burden—only fit individuals can survive such "wasteful" displays.
Evolution
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Batesian Mimicry
Deceptive signaling. Harmless species mimic the appearance of harmful ones to gain protection without paying the metabolic cost of defenses.
Social Dynamics
THEATER EFFECT
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Collective Escalation
When one person stands to see better, everyone must stand, resulting in universal fatigue and no better view.
Individual action -> Collective waste.
This mirrors "educational involution" and rat races.
This mirrors "educational involution" and rat races.
Reverse Signaling: Lions never need to prove they run fast. Top performers skip signals to differentiate.