Don’t think of the model as “what happens to a restaurant when there is an exogenous increase in the beauty of its women” (recall Scott Sumner — “don’t reason from a beautiful women [price] change!” ). Think of the model as “what does lots of beautiful women predict about the place of a restaurant in its product life cycle?”
I read the line in the book as making a causal argument that the beautiful women actually induce lower-quality food, but this heuristic interpretation is more consistent with the overall message of An Economist Gets Lunch.
First Principles Clinton began her campaign by denouncing the big money flowing into out politics. That just got a lot harder for her to talk about.
The Most Hated Merger in America Customers, companies, and even regulators mistrust Comcast. No wonder its deal to buy Time Warner Cable fell apart.
Harvard Students Are Clueless About Fighting Fossil Fuels. They Could Learn a Thing or Two From Stanford.
Tab Roulette! Slate’s business and tech writers share what they’re reading, whether they want to or not.