Re: Cafe Free riders

[Seiji Steimetz]

[  Becker's answer: the free rider makes the cafe look like the place is crowded. People like to flock to crowded places to consume the atmosphere. Some free riders are good for business.  ]   I agree with this answer, except for the "free riding" part since those who idle in the cafe "pay" by providing spillover benefits.  I think this type of network externality also explains why popular nightclubs with huge lines don't just raise their cover charges.   Seiji ___________________________________________________ Seiji Steimetz                               Office:  Social Science Tower 305 University of California, Irvine     Email:   [EMAIL PROTECTED]      Department of Economics          Web:    http://zotnet.net/~steimetz     3151 Social Science Plaza        Office:  (949) 824-1372 Irvine, CA 92697-5100   "Every time a calf is born, the per capita GDP of a nation rises.  Every time a human baby is born, the per capita GDP falls."   -- Julian Simon ___________________________________________________ ----- Original Message ----- From: fabio guillermo rojas To: [EMAIL PROTECTED] Sent: Wednesday, September 13, 2000 6:17 PM Subject: Cafe Free riders Why do cafe's allow people to take up space and not buy anything? Becker's answer: the free rider makes the cafe look like the place is crowded. People like to flock to crowded places to consume the atmosphere. Some free riders are good for business. Cynics answer: cafe's discourage free riders by having small uncomfortable furniture (see Starbuck's on E 53rd in chicago). Any comments? -fluffy