|
|
|
|
|
by erikpukinskis
2628 days ago
|
|
> Under competition, acting like this is the best way to raise to the top Do you have evidence for that, or is it your guess? The study I am aware of on the subject concluded the best strategy in a competitive environment is to act fairly and assume fair play on everyone's behalf, but if someone crosses you, respond with all out force. I think it's called "Generous Tit-for-tat". I don't think "be shitty when you have something to gain" is recognized as a good strategy in Game Theory. |
|
This argues that, if 50% of used cars are good and worth $8000, and 50% are bad and worth $4000, and customers can't tell them apart on the lot, the buyers' expected value is $6000 so the sellers of good cars will make a loss and go out of business. That in turn will reduce the buyers' expected value to $4000.
Obviously, that issue is specific to markets without seller reputations, reliable independent reviews, useful warranties, or effective consumer protection laws. Is Amazon Marketplace that way? You be the judge!
[1] https://en.wikipedia.org/wiki/The_Market_for_Lemons