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.
A) is increased
B) is decreased
C) stays the same
D) cannot be determined given the information provided

Question

Quizplus · Accepted Answer

Actual vendors have to weigh the potential for earning more because there are more people at the game (more total revenue potential) against the fact that more vendors will be competing for these revenues.

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