Assuming those preferences are normally distributed across the beach, both vendors will evenly split the opportunity cost, on average. It’s certainly a reducti

Assuming those preferences are normally distributed across the beach, both vendors will evenly split the opportunity cost, on average. It’s certainly a reductionist metaphor, but it does seem to take this consideration into account. In fact, it’s kind of the point. The vendors split the opportunity cost, so they are at an equilibrium, but the beachgoers are not.