3 ms·
Two words: drip pricing. There's no good-faith reason to always underestimate something when it's been done millions of times.
by civilized 4y ago
Two words: drip pricing.
There's no good-faith reason to always underestimate something when it's been done millions of times.
- 13of40 4y agoBetween rational actors who know everything from day 1, maybe, but there could be a little game theory at play here. Suppose the original estimate is $5B and it's accurate, so the customer doesn't bite. Both sides lose. Then suppose it's $2B, but it drags on and goes over budget a couple of times, ending at the same $5B. The builders get their money and the customer gets their freeway interchange.
- civilized 4y agoYes, this is called drop pricing.