The Challenges of Open Table in the Restaurant Industry

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A last minute cancellation or a no show can be disastrous for restaurants. The obvious way to do that, to avoid that, is to charge people to make reservations. Open Table created policies to minimize the chances that this would happen. It's traditionally been a no-no in the restaurant industry to charge diners.

Why would anyone want to hire a middleman, like a wedding planner, especially if you have time to take care of the planning yourself? Marina Krakovsky, author of The Middleman Economy talks with EconTalk host Russ Roberts about middlemen in the modern economy. Despite predictions that the internet would destroy the need for middlemen, Krakovsky argues they're more valuable than ever though their roles have changed. Krakovsky looks at the different roles middlemen play today and how their value added can justify their existence.