Marina Krakovsky on the Middleman Economy
EconTalk
00:00
The Cost of No Shows in Restaurants
Every restaurant knows that some reservations won't be shown. They just get spread across everybody, it's part of the cost of doing business. So why doesn't a restaurant come along and charge reservation fees so that people who are honest and keep their word will be able to enjoy cheaper meals? I guess the answer there would be that most of us want the flexibility of choosing where we eat on anyone night.
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