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Sure, you can't predict which way any given company will go in a situation like this, but my initial statement is still true. Minimizing costs and maximizing pr
by kungtotte 6y ago
Sure, you can't predict which way any given company will go in a situation like this, but my initial statement is still true. Minimizing costs and maximizing profits is always what companies do absent any external factors.
Consider the following scenario: Walmart builds a new store with lots of parking, and across the road a Target opens and they gamble on having no parking since the Walmart lot is just across the street. Target saves a lot of money this way, so they're incentivised to not build parking.
Imagine that Walmart knows this might happen, and so they choose not to build the parking because they don't want to subsidize Target's parking. Now two huge stores go up with no or minimal parking. It's a prisoner's dilemma brought on by lack of regulation.
- treis 6y agoIn your scenario Walmart wouldn't allow Target's customers to park in their lot. Target would have to weigh the costs/benefits and decide if they wanted their own lot. In some locations that decision might be no or a small lot. But they can't choose that because it's against the law.
- cesarb 6y agoOr perhaps the first store would make the second store's clients pay for the parking. How this usually works: a store or shopping center has paid parking, but if you buy more than R$ XX at that store or shopping center, the parking fee is waived.