| That's not as strong an argument as you think it is. It is common for industries to have settle on points / equilibria based on what other players are doing, and companies typically don't unilaterally rock the boat too much. However external factors act as forcing functions (I call them nucleation sites as a crystallization analogy) around which new equilibria can develop. Regulatory changes are one such example. For example, during COVID many hotels shifted to not doing daily housekeeping. At that point they cited social distancing or workforce shortage reasons. But it's been 2 years since the pandemic was completely over and many hotels now still don't do daily housekeeping. The prices of course haven't reduced. Back in 2014 when California had a drought, my car dealership stopped offering free washes as part of the maintenance package citing bullshit "let's do our part in saving water" reasons. The drought is long over but the free car washes have not come back. |