That's quite a misapplication of micro theory. The supply-demand diagram doesn't apply (very well) in cases without complete information, for instance. For exam

That's quite a misapplication of micro theory. The supply-demand diagram doesn't apply (very well) in cases without complete information, for instance. For example, there are many customers who aren't even aware of the businesses being advertised. That's the premise of Groupon--not to get existing customers to come back more, but to get new customers who didn't even know about the businesses. I'm not saying that this is effective--the only way to know for sure is through testing, which I'm sure Groupon can do, but I'm bothered by the author's manipulation of micro theory.