All of the pizza examples are about reducing cost. The argument about dating apps is about increasing retention. The dynamics are qualitatively different.
The argument with pizza is more like "people like salty, fatty food, so pizza places are incentivized to make their pizza less healthy so that people come back more often"... which is exactly what happens!
So why doesn't a legitimately healthy restaurant come along and take the whole market? It's partly because restaurants aren't just in the business of selling (healthy) food: it's also about convenience and satisfaction and experience. More importantly, that just doesn't fit with how people largely make day-to-day decisions.
The same thing happens with dating apps. People get drawn in for all sorts of reasons that don't necessarily map to getting married, even if finding a long-term relationship is explicitly their goal. Tinder competes with Tiktok more than it competes with other dating apps.
The other problem is that making a really effective dating app is just hard. It's fundamentally difficult to help people find compatible partners, especially without in-person contact. That's compounded by cultural and demographic issues. It doesn't matter how well your app is designed when there's a massive imbalance in genders!
I don't think comparing the dating app to a pizza restaurant makes the dating app argument fall apart. The difference is that even a satisfied customer will get hungry again, so it's possible to provide a really good experience and still have that customer come back. A dating app is unique (or, at least in a different category) in that the best possible outcome for the user (assuming monogamy) is that the user deletes the app and never uses it again.
More fundamentally--if a good product keeps a customer coming back for more there's an incentive to provide a good product. If a happy customer doesn't have any reason to come back there's no value in creating a happy customer.
Note that "come back" needs to be interpreted broadly. For example, a Osprey backpack--lifetime warranty against most anything, doesn't look like there's any space for repeat customers. But--those of us who would buy something like that very well might want different sizes. And I would certainly recommend them to others who were in the market for a serious backpack. (And, yes, they do honor the warranty--had a buckle snap, I sent them pictures, they offered to repair it, or ship me the part and I do it myself. Took the latter option, a few days later I had a strap and buckle that I threaded through my pack, good as new other than the color didn't match.)
The principal-agent problem is a conflict of interest that occurs when an agent (e.g., an employee) acts on behalf of a principal (e.g., an owner) but pursues their own goals instead of the principal's. This arises from an information asymmetry, where the agent knows more about their actions and their motivations than the principal, and it can lead to agents not acting in the best interest of the principal, even at a cost to the principal.
> Why is food so expensive at sporting events? ... why don’t venues sell water for $2 and raise ticket prices instead? I don’t know. Probably something complicated, like that expensive food allows you to extract extra money from rich people without losing business from non-rich people.
Because there's at least two additional parties to concession revenues beyond the venue operator: the home team, who often takes up to 50% of the revenue, and concessionaires, who employ the servers and supply the actual food.
Venue operators and sports teams don't like the liability and cost exposures of serving food, so they farm it to a third party. And rather than carve that up into multiple competing vendors, most modern large venues hand it to a single hospitality company, who uses scale to lower costs and offer a lower share of revenue in exchange for exclusivity over all venue food service. Without competition, they can jack the price up.
Worth noting two things on the "why not raise ticket prices" angle: ticketing is moving in the same outsourced direction as concessions, and ticket prices are going up anyway (up >100% since 1999[1]).
> Across pro sports, Matheson says, teams are making the determination that "they can make more money selling fewer, more expensive tickets rather than lots of cheap seats."
Most venues have given up having their own box offices and farm that out to StubHub, TicketMaster, etc. Same motivations, same result: the venue spends less by contracting out ticketing, the team gets a bigger cut of the revenue, and the ticket vendors get exclusive control not only over selling the tickets but reselling them, with dark patterns like dynamic pricing and fees piled onto the buyer at every part of every transaction.
Both wipe out all competition on both quality and price. Everyone benefits from it except the consumer, who's the only party who can't choose. Apply that pattern to existing fanbases grown over generations during eras of better prices or quality and you get a captive audience who complains constantly but never quits spending, so there's no pressure to lower prices or improve quality.
>Everyone benefits from it except the consumer, who's the only party who can't choose.
But of course they can choose. They can choose to not go to those events and venues and do other things with their time.
And I expect that pro sports will look back on these moves and realize that they cannibalized their future fan growth for higher revenues today. I go to fewer pro sports games than I might otherwise both because of the absolute cost and because it feels bad to pay a bunch for a ticket and then also have to pay like $15 for a hot dog. And I take my kids to fewer than my parents took me to for similar reasons.
This is the same pro sports industry that already stops you watching matches on TV once a week, spreads them over several different streaming platforms so you pay several times, and is currently trying to make it so you can't watch matches on devices that can sideload apps. Apparently, their revenue has only been going up, even with all these shitty things already happening...
This is why I fail to see the value in boycotts at this point. Anything that I boycott will be cancelled out probably 10 fold by people happy to buy from that place still or just required.
Like I'm not willing to pay certain prices for things like I fly less because the experience is worse than it should be, by a lot and I can't handle paying 10x more for the business class option. So I'm just stuck doing it. And there are plenty of people who are happy to do it still.
So you end up left with a rock and a hard place. Do I not travel? Do I not go buy that thing? Do I not do these things that would possibly add happiness to my life to fight price gouging? Especially when you know that for every 1 of you there are 6 other people happy to pay the price or buy the thing.
It feels like a lot of these big companies are just too big to fail at this point and abuse us for it.
The average "boycott" is not even organized, has no particular goal, and is just meant to make the boycotter feel morally superior. I bet Starbucks execs giggle every time they hear about the next boycott. The people calling for the boycott probably haven't been in a Starbucks in 15 years, and they don't have any intention of becoming regular customers if they do.
Thinking of boycotts that have worked in the past, they generally had specific demands and a plan to resume normal consumption when those demands were met. The Gallo wine boycott in the 70s was successful. The workers had a clear case, simple demands, a desire to negotiate, and a call to boycott one specific winery until they came to the table. When they did, the boycott was lifted and the majority of boycotters went back to consuming the wine.
On the other hand, if I decided to boycott Gallo wine, they wouldn't notice, because I don't think I've bought a bottle of Gallo in my life, and I haven't given a good reason to do it for other people to join me.
I used to think, "I'll stop shopping here! They'll change their policies!", and yeah, nope, what happens is the company just leans into the customers that remained. So my "boycott" didn't do anything but deprive me of something I wanted.
However, I decided that, at least for a certain set of things, my desire for the thing can be outweighed by my desire not to contribute to something.
So boycott's aren't about me changing a company's policies, they're about me allocating my resources towards the things I want to see in the world.
Boycotts don’t work unless they are organized and articulate a concrete demand. I respect boycotts that have an organization behind them and a clear end goal, even if that goal may be far off.
When organizers ask for a boycott that may take years, their goal should be worthy to justify the consumer pain. BDS is a good example, it will take a while but stopping the apartheid Israeli regime is good.
To a first approximation, boycotts never work. The concept exists as an opiate and sop make you think you have power as a consumer and that regulations are unnecessary, but it's a mirage.
Tesla sales tell a different story. The people who were all for Tesla are fleeing and when he had his brief moment of MAGA alignment, it didn’t help because most of them didn’t have the money and/or desire to buy an EV.
Tesla is having sells issues world wide due to a large part because of Musk.
Another recent example how fast Disney turned around and bought Kimmel back after people started cancelling Disney+ subscriptions left and right.
Disney had to ignore pressure from Trump and the FCC. It definitely wasn’t a principled stand - they were one of the ones who bribed Trump personally.
Tesla is suffering not so much a boycott as a brand failure. The car is sold as a status symbol among a certain group, and they tanked that status. It wasn't a boycott so much as an own goal.
The ultimate dating app/service would fill everyone's needs for a short period of time and make them feel good about it, to have them back the next weekend for another go. This means that people traditionally left in the cold would get something out of it, and people who feel like dating lacks meaning would find meaning, etc., but they would get their fill in a date or two, and be back looking again.
>Why doesn’t someone else create a competing app that’s better and thereby steal all their business?
How do I know if the competing app is actually better? I mean, this was the advertising angle for eHarmony about a decade ago - that it was much better than competitors at actually turning matches into marriages. But this claim was found to be misleading, and they were advised to stop using it.
Could a potential customer really get to the bottom of which site is the best at finding a real match? It's not like a pizza restaurant where I can easily just a bunch until I find my favorite and then keep buying it. Dating apps are like a multi-armed bandit problem, but you stop pulling arms once you get one success. So your only direct feedback is failed matches.
And the "people actually want worse, cheaper products."
iPhone sales numbers, as an example, say otherwise. If it was universally true that people just want cheap crap, everyone would rush to get whatever $200 budget motorola android the carrier is hawking for "free."
I could seen an argument that people want cheaper products, but certainly not worse. Airlines aren't the best example because margins are pretty low, but food concessions? Insane markup, consumer should expect them to just eat the cost of making a better product for cheaper, they certainly have the margin to do so.
Make product worse, get money, go out of business.
It's interesting that this article uses the restaurant industry as an example, because it is rife with examples of restaurants that debut to acclaim, enshittify their offerings, and then go out of business as their clientele evaporates. How many software products have gone the same route? How many were initially good, bolted on too many unwanted features, ignored their core audience, and ultimately lost their users to the next big thing?
It seems like something is missing in this fellows theory, and the answer is fair competition. Pizzaria's don't sell cardboard discs for $300 precisely because they become the worst pizza in town long before reaching that point. Restaurants that stay in business long-term are forced to limit their impulse to seek greater profits. They must maintain a level of quality that lets them remain competitive. That's a hard limit imposed by the market. Many choose to dance around on the boundaries of this limit. It's profitable, but risky. If you go too far and consumers abandon you, you can't just improve your product a little and expect them to flock back.
This is why big tech companies love to buy out, lobby against, and otherwise disrupt or obliterate their competitors. Competition is what places limits on profit-seeking enshitification. If you can establish a monopoly then you can enshittify to your heart's content. e.g. Google.
The great thing about the dating app biz is that the competition is universally awful at providing good matches that lead to long term relationships. The same goes for pro match-makers, speed-dating events, etc.. It's a hard problem to predict what makes two people click together, even if you get them to meet face to face.
These companies aren't enshittifying their products to make money. They were just never good to begin with. Dating success still boils down to the shotgun approach. So, it becomes a question about who can fool the most users with false claims and reach the critical mass required to load buckshot in everybody's blunderbusses.
I imagine someone could have leveraged that:
1. Build a safe car when no others are
2. Advertise like crazy “other cars will kill you - ours won’t!”
3. Profit?
Wasn't that Volvo's whole thing? They invented the 3-point seatbelt and were always positioned as the safest car option when I was growing up in the 80s and 90s.
The perfect information consumer knows Tik Tok doom scrolling, while pleasurable in the short term, actually hurts them in the long term, so that is, of course, a very unpopular application.
I think the main problem is getting a market leading position and then enshittification. It takes time for the competition to eat the lunch, and while that is happening users are getting screwed over. And the competition is going to do the exact same since they are burning VC money to grow with undercutting, so any legitimate business with no intention to rugpull cannot compete since they have neither the users nor the cheapest prices.
All of the pizza examples are about reducing cost. The argument about dating apps is about increasing retention. The dynamics are qualitatively different.
The argument with pizza is more like "people like salty, fatty food, so pizza places are incentivized to make their pizza less healthy so that people come back more often"... which is exactly what happens!
So why doesn't a legitimately healthy restaurant come along and take the whole market? It's partly because restaurants aren't just in the business of selling (healthy) food: it's also about convenience and satisfaction and experience. More importantly, that just doesn't fit with how people largely make day-to-day decisions.
The same thing happens with dating apps. People get drawn in for all sorts of reasons that don't necessarily map to getting married, even if finding a long-term relationship is explicitly their goal. Tinder competes with Tiktok more than it competes with other dating apps.
The other problem is that making a really effective dating app is just hard. It's fundamentally difficult to help people find compatible partners, especially without in-person contact. That's compounded by cultural and demographic issues. It doesn't matter how well your app is designed when there's a massive imbalance in genders!
It isn't just restaurants, but also supermarkets.
They don't produce food; they produce shareholder wealth. That's their goal.
Healthy food, grown naturally, not sprayed with chemicals, harvested in the last week, is just not a cost-effective plan for them.
> Tinder competes with Tiktok more than it competes with other dating apps.
is a crazy remark, but I think you're right. We're living in weird time!
I don't think comparing the dating app to a pizza restaurant makes the dating app argument fall apart. The difference is that even a satisfied customer will get hungry again, so it's possible to provide a really good experience and still have that customer come back. A dating app is unique (or, at least in a different category) in that the best possible outcome for the user (assuming monogamy) is that the user deletes the app and never uses it again.
More fundamentally--if a good product keeps a customer coming back for more there's an incentive to provide a good product. If a happy customer doesn't have any reason to come back there's no value in creating a happy customer.
Note that "come back" needs to be interpreted broadly. For example, a Osprey backpack--lifetime warranty against most anything, doesn't look like there's any space for repeat customers. But--those of us who would buy something like that very well might want different sizes. And I would certainly recommend them to others who were in the market for a serious backpack. (And, yes, they do honor the warranty--had a buckle snap, I sent them pictures, they offered to repair it, or ship me the part and I do it myself. Took the latter option, a few days later I had a strap and buckle that I threaded through my pack, good as new other than the color didn't match.)
It's like any other "problem solver service". There's always an incentive to farm repeat business.
The principal-agent problem is a conflict of interest that occurs when an agent (e.g., an employee) acts on behalf of a principal (e.g., an owner) but pursues their own goals instead of the principal's. This arises from an information asymmetry, where the agent knows more about their actions and their motivations than the principal, and it can lead to agents not acting in the best interest of the principal, even at a cost to the principal.
> Why is food so expensive at sporting events? ... why don’t venues sell water for $2 and raise ticket prices instead? I don’t know. Probably something complicated, like that expensive food allows you to extract extra money from rich people without losing business from non-rich people.
Because there's at least two additional parties to concession revenues beyond the venue operator: the home team, who often takes up to 50% of the revenue, and concessionaires, who employ the servers and supply the actual food.
Venue operators and sports teams don't like the liability and cost exposures of serving food, so they farm it to a third party. And rather than carve that up into multiple competing vendors, most modern large venues hand it to a single hospitality company, who uses scale to lower costs and offer a lower share of revenue in exchange for exclusivity over all venue food service. Without competition, they can jack the price up.
Worth noting two things on the "why not raise ticket prices" angle: ticketing is moving in the same outsourced direction as concessions, and ticket prices are going up anyway (up >100% since 1999[1]).
> Across pro sports, Matheson says, teams are making the determination that "they can make more money selling fewer, more expensive tickets rather than lots of cheap seats."
Most venues have given up having their own box offices and farm that out to StubHub, TicketMaster, etc. Same motivations, same result: the venue spends less by contracting out ticketing, the team gets a bigger cut of the revenue, and the ticket vendors get exclusive control not only over selling the tickets but reselling them, with dark patterns like dynamic pricing and fees piled onto the buyer at every part of every transaction.
Both wipe out all competition on both quality and price. Everyone benefits from it except the consumer, who's the only party who can't choose. Apply that pattern to existing fanbases grown over generations during eras of better prices or quality and you get a captive audience who complains constantly but never quits spending, so there's no pressure to lower prices or improve quality.
1: https://www.npr.org/2025/10/23/nx-s1-5561909/ticket-prices-s...
>Everyone benefits from it except the consumer, who's the only party who can't choose.
But of course they can choose. They can choose to not go to those events and venues and do other things with their time.
And I expect that pro sports will look back on these moves and realize that they cannibalized their future fan growth for higher revenues today. I go to fewer pro sports games than I might otherwise both because of the absolute cost and because it feels bad to pay a bunch for a ticket and then also have to pay like $15 for a hot dog. And I take my kids to fewer than my parents took me to for similar reasons.
This is the same pro sports industry that already stops you watching matches on TV once a week, spreads them over several different streaming platforms so you pay several times, and is currently trying to make it so you can't watch matches on devices that can sideload apps. Apparently, their revenue has only been going up, even with all these shitty things already happening...
This is why I fail to see the value in boycotts at this point. Anything that I boycott will be cancelled out probably 10 fold by people happy to buy from that place still or just required.
Like I'm not willing to pay certain prices for things like I fly less because the experience is worse than it should be, by a lot and I can't handle paying 10x more for the business class option. So I'm just stuck doing it. And there are plenty of people who are happy to do it still.
So you end up left with a rock and a hard place. Do I not travel? Do I not go buy that thing? Do I not do these things that would possibly add happiness to my life to fight price gouging? Especially when you know that for every 1 of you there are 6 other people happy to pay the price or buy the thing.
It feels like a lot of these big companies are just too big to fail at this point and abuse us for it.
The average "boycott" is not even organized, has no particular goal, and is just meant to make the boycotter feel morally superior. I bet Starbucks execs giggle every time they hear about the next boycott. The people calling for the boycott probably haven't been in a Starbucks in 15 years, and they don't have any intention of becoming regular customers if they do.
Thinking of boycotts that have worked in the past, they generally had specific demands and a plan to resume normal consumption when those demands were met. The Gallo wine boycott in the 70s was successful. The workers had a clear case, simple demands, a desire to negotiate, and a call to boycott one specific winery until they came to the table. When they did, the boycott was lifted and the majority of boycotters went back to consuming the wine.
On the other hand, if I decided to boycott Gallo wine, they wouldn't notice, because I don't think I've bought a bottle of Gallo in my life, and I haven't given a good reason to do it for other people to join me.
I changed my own internal concept of a boycott.
I used to think, "I'll stop shopping here! They'll change their policies!", and yeah, nope, what happens is the company just leans into the customers that remained. So my "boycott" didn't do anything but deprive me of something I wanted.
However, I decided that, at least for a certain set of things, my desire for the thing can be outweighed by my desire not to contribute to something.
So boycott's aren't about me changing a company's policies, they're about me allocating my resources towards the things I want to see in the world.
Yep. Me not buying from Amazon isn't going to make a dent in their bottom line, but it'll make a significant dent in my happiness.
Boycotts don’t work unless they are organized and articulate a concrete demand. I respect boycotts that have an organization behind them and a clear end goal, even if that goal may be far off.
When organizers ask for a boycott that may take years, their goal should be worthy to justify the consumer pain. BDS is a good example, it will take a while but stopping the apartheid Israeli regime is good.
https://bdsmovement.net/
A less intensive campaign is the Starbucks Union’s no contract no coffee pledge, which presumably will last only weeks to months.
https://www.nocontractnocoffee.org/
To a first approximation, boycotts never work. The concept exists as an opiate and sop make you think you have power as a consumer and that regulations are unnecessary, but it's a mirage.
Tesla sales tell a different story. The people who were all for Tesla are fleeing and when he had his brief moment of MAGA alignment, it didn’t help because most of them didn’t have the money and/or desire to buy an EV.
Tesla is having sells issues world wide due to a large part because of Musk.
Another recent example how fast Disney turned around and bought Kimmel back after people started cancelling Disney+ subscriptions left and right.
Disney had to ignore pressure from Trump and the FCC. It definitely wasn’t a principled stand - they were one of the ones who bribed Trump personally.
Tesla is suffering not so much a boycott as a brand failure. The car is sold as a status symbol among a certain group, and they tanked that status. It wasn't a boycott so much as an own goal.
The ultimate dating app/service would fill everyone's needs for a short period of time and make them feel good about it, to have them back the next weekend for another go. This means that people traditionally left in the cold would get something out of it, and people who feel like dating lacks meaning would find meaning, etc., but they would get their fill in a date or two, and be back looking again.
>Why doesn’t someone else create a competing app that’s better and thereby steal all their business?
How do I know if the competing app is actually better? I mean, this was the advertising angle for eHarmony about a decade ago - that it was much better than competitors at actually turning matches into marriages. But this claim was found to be misleading, and they were advised to stop using it.
Could a potential customer really get to the bottom of which site is the best at finding a real match? It's not like a pizza restaurant where I can easily just a bunch until I find my favorite and then keep buying it. Dating apps are like a multi-armed bandit problem, but you stop pulling arms once you get one success. So your only direct feedback is failed matches.
Why don't highschools teach every student these two things?
1. The miracle of markets (supply and demand, "the invisible hand," etc.)
2. The weakness of markets (incomplete information, monopoly, etc.)
Probably the same reason they don't teach how rhetoric works.
What a dumb article. My favorite part was 'people are incentivized to make unsafe cars' and comparing that to pizza
And the "people actually want worse, cheaper products."
iPhone sales numbers, as an example, say otherwise. If it was universally true that people just want cheap crap, everyone would rush to get whatever $200 budget motorola android the carrier is hawking for "free."
I could seen an argument that people want cheaper products, but certainly not worse. Airlines aren't the best example because margins are pretty low, but food concessions? Insane markup, consumer should expect them to just eat the cost of making a better product for cheaper, they certainly have the margin to do so.
Make product worse, get money, go out of business.
It's interesting that this article uses the restaurant industry as an example, because it is rife with examples of restaurants that debut to acclaim, enshittify their offerings, and then go out of business as their clientele evaporates. How many software products have gone the same route? How many were initially good, bolted on too many unwanted features, ignored their core audience, and ultimately lost their users to the next big thing?
It seems like something is missing in this fellows theory, and the answer is fair competition. Pizzaria's don't sell cardboard discs for $300 precisely because they become the worst pizza in town long before reaching that point. Restaurants that stay in business long-term are forced to limit their impulse to seek greater profits. They must maintain a level of quality that lets them remain competitive. That's a hard limit imposed by the market. Many choose to dance around on the boundaries of this limit. It's profitable, but risky. If you go too far and consumers abandon you, you can't just improve your product a little and expect them to flock back.
This is why big tech companies love to buy out, lobby against, and otherwise disrupt or obliterate their competitors. Competition is what places limits on profit-seeking enshitification. If you can establish a monopoly then you can enshittify to your heart's content. e.g. Google.
Is google really a monopoly? You can just use another search engine or email provider.
I would say it has a good moat in the minds of consumers, but not a good moat in reality.
As for dating apps...
The great thing about the dating app biz is that the competition is universally awful at providing good matches that lead to long term relationships. The same goes for pro match-makers, speed-dating events, etc.. It's a hard problem to predict what makes two people click together, even if you get them to meet face to face.
These companies aren't enshittifying their products to make money. They were just never good to begin with. Dating success still boils down to the shotgun approach. So, it becomes a question about who can fool the most users with false claims and reach the critical mass required to load buckshot in everybody's blunderbusses.
>Cars: “The thing about automakers is that making cars safe is expensive. So they have an incentive to make unsafe cars.”
It took a lot of wrangling to get them to be safe. They were coffins on wheels for decades.
I imagine someone could have leveraged that: 1. Build a safe car when no others are 2. Advertise like crazy “other cars will kill you - ours won’t!” 3. Profit?
Wasn't that Volvo's whole thing? They invented the 3-point seatbelt and were always positioned as the safest car option when I was growing up in the 80s and 90s.
The perfect information consumer knows Tik Tok doom scrolling, while pleasurable in the short term, actually hurts them in the long term, so that is, of course, a very unpopular application.
I have no idea what you’re talking about here.
I think the main problem is getting a market leading position and then enshittification. It takes time for the competition to eat the lunch, and while that is happening users are getting screwed over. And the competition is going to do the exact same since they are burning VC money to grow with undercutting, so any legitimate business with no intention to rugpull cannot compete since they have neither the users nor the cheapest prices.
Then we need a better competitive environment that doesn't rely on VC money and growth hacking
Cars it's not about safety, they have been made worse in terms of maintenance costs, and that's where a lot of the money is made.
You need OEM parts, or you can't simply buy a piece that broke, but you need a whole module.
The trend seems to be locking crap with software.
So in a way, while they improved greatly in terms of safety, maintenance and parts it's completely absurd.
Pizza 1 and 2 are true for when you become a chain and public company. Pizza 3 makes no sense on its face.