But the gala dinners work because they’re conspicuously wasting significant resources, e.g. being held in a prominent venue, being hosted by or presenting famous performers or entertainers; the signal is costly, i.e. a significant portion of the money raised by gala dinners goes to paying to put on the gala dinner itself.
The fact that a lot of charities run gala dinners and wealthy people are willing to pay a lot of money for that, suggests that the model can work.
I think many more rich people go to charity gala dinners than rich people smoking cigars with $100.
But the gala dinners work because they’re conspicuously wasting significant resources, e.g. being held in a prominent venue, being hosted by or presenting famous performers or entertainers; the signal is costly, i.e. a significant portion of the money raised by gala dinners goes to paying to put on the gala dinner itself.