In class, we explain why a college degree can serve as a signal for quality to separate able job candidates from unable ones. Use the same logic to explain why free return provided by eBay sellers can serve as a quality signal. Explain how bias in judgement explains overconfidence. Conditional on observable characteristics, taller people make more money than shorter people on average. Explains what unobservables can contribute to this correlation. L.10 discrimination Explain what is statistical discrimination. At the airport, the Transportation Security Administration swabs some passengers' hands at checkpoints and gates to test them for traces of explosives. Data show that men get hand swabs more frequent than women. Is this discrimination? L.9 attention Stango and Zinman (2014) find that taking an overdraft-related survey has a substantial immediate effect on behavior: within the month of the survey, taking an overdraft-related survey reduces the probability of incurring any overdraft fee by an estimated 3.7 percentage points on a base of 30%. What economic theory explains this finding? Explain