Food and Drink

What Economists Say About All-You-Can-Eat

Weekly Economic News Roundup and all-you-can-eat economics
Comments (1)
  1. Rick Shapiro says:

    “But it did not quite work out that way” because of behavioral economics.
    – It tickles the cheating resentment instinct (validated not merely in humans, but in many other primates) because not eating gluttonously in the higher-priced meal seems to be subsidization of other pigs.
    – It tickles the sunk cost fallacy because reduced marginal utility of the last bite gets eclipsed by the thought of not taking full advantage of the more expensive shrimp order.
    –The result is less profit for the restaurant, and unhealthy gluttony for the patron.

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