3 ms·
I don't know if this effect has a name, but this sort of thing happens in every industry. I noticed in on a popular tourist trap boardwalk where every restauran
by trophycase 8y ago
I don't know if this effect has a name, but this sort of thing happens in every industry. I noticed in on a popular tourist trap boardwalk where every restaurant had a "barker" out front trying to tell you to come in. It's basically added costs for all businesses with more or less a 0 increase in net demand for the set of businesses as a whole, it merely redistributes demand amongst them.
- notriddle 8y agoAs he already said, it's called The Prisoner's Dilemma. The situation where everybody defects (everybody has a barker) is worse than the situation where nobody defects (barkers are unheard of). But the nobody-defects situation is unstable, because if Store A has a barker and Store B does not, then Store A will be swimming in money and Store B will go out of business (or, in reality, be forced to hire a barker themselves). Probably the clearest example I can think of is doing a no-adblock Google Search for "Coca-Cola." The first result is an ad, put out by the Coca-Cola Company. This might not seem to make any sense, since the first non-ad result is an identical link to the same website, but imagine what Cott Corporation or PepsiCo would do if they could by the first result for their competitor...
- stubish 8y agoAnd then there is me going into the only restaurant without a barker, because it was the only one I could check out the menu of without being hassled :)