In Oettinger's paper studying the labor supply decisions of stadium vendors,he considered the following complication.For games played on weekends,for games played in good weather,and for games where the Rangers' opponent was popular and/or enjoying on-field success,the potential to earn more during the game increased,but all other vendors realized this as well.In essence,a vendor might actually make less during a "high total revenue potential" game if lots of other vendors decided to work that game as well.The likelihood of finding that vendors were more likely to "participate" for high total revenue potential games ________ by accounting for the strategic behavior of other vendors.Explain your answer.

Question

Quizplus · Accepted Answer

Accounting for the strategic behavior of other vendors means recognizing that vendors may take into account how many of their peers will participate in a game when making their own decision to participate. With this recognition, it becomes less likely that vendors will choose to participate in high total revenue potential games when they know that many other vendors will also participate, since this will lead to increased competition for sales and potentially lower earnings for each vendor. Therefore, the likelihood of participating for high total revenue potential games is decreased.

In Oettinger's Paper Studying the Labor Supply Decisions of Stadium