Here’s a spot-on response from my Ph.D. Micro final.

The Question:

True, False, and
Explain:
  In
signaling models, selfish agents might voluntarily supply public goods.

The Answer:

True.  Yes, if donating to charities, giving blood, or sponsoring militia units or adopting part of a roadway signals, “I am a nice guy; vote for me and/or buy my products and/or marry me, because if I am this nice to complete strangers, imagine how great I am to my constituents/customers/family!  Also, I can afford to do a lot for you.”  It’s like potlatch!

HT: John Fast