The Cost of No Shows in Restaurants

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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.

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.