Forward markets in everything, restaurant edition
Jason Kottke relates:
The Riverdale Garden Restaurant in the Bronx is trying out a novel way of staying in business: they’re asking for their regulars to pledge $5000 in exchange for a year of free dinners.
The problem of course is obvious. First, you probably won’t get your money back. Second, if everyone paid up, the restaurant has a weaker incentive to serve good food. And which customers do you think will receive the best treatment? The ones who put up nothing per each meal?