Side Dishes at the Tavern Restaurant
Media Type: Office Hours Topic: Behavioral Economics
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I visit The Tavern Restaurant to investigate whether a feature of the menu -- the ability to order an unlimited number of sides -- causes some customers to alter how they order. I then explain that The Tavern is able to offer this "too good to be true" deal because most customers experience diminishing marginal utility from consuming large quantities and they therefore typically only order a couple of sides. How many sides would you order? Also, is there a way to game the menu and pay less?
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