1. Gift giving Take out a piece of paper Think about this past Christmas – Estimate the dollar cost of all of the gifts you received – Estimate the dollar value (to you) of all of the gifts you received – Are they equal?

2. Gift giving Is cash the best gift of all? You know your preferences – It takes time and effort for someone to find you the perfect gift

3. Gift giving Why was Elaine mad at Jerry? Signaling – an action taken by an informed party to reveal private information to an uninformed party “Show her how much you love her”