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There's an economics principle of equilibrium, an example of which is when one previously closed cash register opens, people fill up that line till all of the lines are even. What if people stood in the longest line because the cashier offered 30% off of their groceries if they went stayed in that line (in other words, no equilibrium) and the newly-opened cash register would remain empty? Assuming there's no incentive (other than you get fired if no one goes to your cash register), what would be the long-term effects of such a decision by the cashier? I'm just wondering .
Those who value time more than the saving will have an express checkout. I don't think that the other cashier would remain empty. Especially if someone is only spending a few $$.
What would likely occur is that people would start buying in bulk to the point where the 30% in savings is greater than the time required to wait. So you'll have two lines. One line of people buying a large quantity of items at a 30% discount and a line of people purchasing a low quantity items and paying a few bucks more than had they gone to the other line.
There's an economics principle of equilibrium, an example of which is when one previously closed cash register opens, people fill up that line till all of the lines are even. What if people stood in the longest line because the cashier offered 30% off of their groceries if they went stayed in that line (in other words, no equilibrium) and the newly-opened cash register would remain empty? Assuming there's no incentive (other than you get fired if no one goes to your cash register), what would be the long-term effects of such a decision by the cashier? I'm just wondering .
There's an economics principle of equilibrium, an example of which is when one previously closed cash register opens, people fill up that line till all of the lines are even. What if people stood in the longest line because the cashier offered 30% off of their groceries if they went stayed in that line (in other words, no equilibrium) and the newly-opened cash register would remain empty? Assuming there's no incentive (other than you get fired if no one goes to your cash register), what would be the long-term effects of such a decision by the cashier? I'm just wondering .
You'd have more people complaining that the store didn't open up enough lanes.
Thanks for your answers! What about if there was a disincentive for the cashier who doesn't make as much money - that is, the cashier who earns less money is fired. Would the regular cashier initiate discount wars with the cashier who has offered 30% off?
Thanks for your answers! What about if there was a disincentive for the cashier who doesn't make as much money - that is, the cashier who earns less money is fired. Would the regular cashier initiate discount wars with the cashier who has offered 30% off?
Yes. It would essentially mimic gas stations where stations in a certain area are generally the same price (yes, I know there are exceptions).
Those who value time more than the saving will have an express checkout. I don't think that the other cashier would remain empty. Especially if someone is only spending a few $$.
What would likely occur is that people would start buying in bulk to the point where the 30% in savings is greater than the time required to wait. So you'll have two lines. One line of people buying a large quantity of items at a 30% discount and a line of people purchasing a low quantity items and paying a few bucks more than had they gone to the other line.
The store would just go broke. Margin on a grocery store isn't 30%, so the only way they could offer 30% off would be to mark up prices by say 25%. Basically, it's a convenience store at that point or a 5% discount store for the rent-seekers. Most people would just go to another store.
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