Costly Signaling on House of Cards

[spoilers, obviously]

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Game theorists often talk about “burning money” metaphorically, but this is as close to reality as it gets. Doug Stamper wants President Frank Underwood to appoint him White House Chief of Staff. Frank is unsure whether Doug is a committed type or an uncommitted type. In the absence of any new information, Frank would be better off denying Doug the position, as it would give Doug the ability to feed sensitive information to Frank’s primary opponent. So Doug burns a scandalous journal entry that he could have sold for $2 million and notes that only a resolved type would be willing to forgo that gain. Frank hires him.

If you are wondering why political scientists like House of Cards so much, that’s why. Costly signaling at its finest.

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