Filtered dossier

Hidden Numbers

Quantities that hide a rule you never agreed to.

  • 12 / 12
  • No visual on file
    Scarcity & Queues Entry #0463

    Why a smaller venue makes a bigger event

    A hall that cannot hold everyone converts attendance into something obtained rather than chosen, and produces a visible queue as evidence of value.

    Novice
    The hidden part #0463

    Reducing capacity does not reduce the event. It converts attendance into something that had to be obtained.

    Open file
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    Price Psychology Entry #0367

    Why the cheapest tier exists to be rejected

    A visibly inadequate lowest option is not there to sell. It converts an absolute price judgement into a comparison the middle tier is built to win.

    Adept
    The hidden part #0367

    The lowest tier is not a product. It is the reference the next tier is measured against.

    Open file
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    Price Psychology Entry #0365

    Why an annual plan hides the churn decision

    A monthly cycle asks the customer twelve times whether to continue. An annual cycle asks once, and inertia answers on every day in between.

    Master
    The hidden part #0365

    Retention is not only how much people want to continue. It is how often they are asked to decide.

    Open file
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    Price Psychology Entry #0364

    The reason instalments change what people buy

    A total is compared against savings; a monthly figure is compared against small routine expenses. Changing the unit changes which comparison is made.

    Adept
    The hidden part #0364

    The unit chooses the comparison. A monthly figure is measured against small habits, a total against savings.

    Open file
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    Price Psychology Entry #0363

    Why a discount you did not ask for lowers value

    An unrequested reduction answers a question the buyer had not asked: what the seller can still accept. The old price stops being a fact about the product.

    Novice
    The hidden part #0363

    A volunteered discount does not describe a better deal. It describes how much room the first price contained.

    Open file
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    Market Signals Entry #0416

    The reason a price cut can signal weakness

    Buyers do not read a lower price only as a better deal. They also ask what the seller learned that made the old price impossible to hold.

    Adept
    The hidden part #0416

    An unexplained reduction is not a better offer. It is the seller revising a claim they previously made in public.

    Open file
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    Market Signals Entry #0415

    Why an office location communicates a strategy

    Rent is paid monthly, in public, and cannot be quietly withdrawn. That combination makes an address one of the few statements a firm cannot cheaply fake.

    Master
    The hidden part #0415

    A statement can be revised silently. A lease cannot, and that is precisely why an address carries information.

    Open file
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    Market Signals Entry #0414

    The reason a refund rate is published only when low

    Voluntary disclosure is not a sample of the facts. Where hiding a number is allowed, every published number is one that its owner preferred to publish.

    Adept
    The hidden part #0414

    Where silence is permitted, published figures are a sample of preferences, not a sample of the market.

    Open file
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    Market Signals Entry #0413

    Why silence from a large company is a signal

    An organisation with a communications department can always issue a denial. When it issues nothing instead, the absence carries information a denial would not.

    Novice
    The hidden part #0413

    A denial is cheap for those who can safely deny. Silence is what remains when the cheap option is unavailable.

    Open file
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    Incentive Design Entry #0392

    Why a quota changes the composition of output

    A quota specifies a count. Whatever is not counted becomes the cheapest thing to sacrifice, so the total holds while the mix quietly deteriorates.

    Adept
    The hidden part #0392

    A quota does not raise output. It rearranges output around the one attribute that is being counted.

    Open file
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    Incentive Design Entry #0390

    Why free options are consumed wastefully

    A price does two jobs: it raises revenue and it sorts users by how much they need the thing. Remove the price and the second job stops being done.

    Master
    The hidden part #0390

    A price is not only a charge. It is a filter that sorts demand by need, and free resources have no filter.

    Open file
  • No visual on file
    Incentive Design Entry #0389

    The reason a rating system inflates over time

    Nobody in the system gains from a low score. When every participant benefits from inflation, the scale compresses upward until it stops distinguishing anything.

    Adept
    The hidden part #0389

    A rating scale does not collapse because reviewers are kind. It collapses because nobody in it profits from a low number.

    Open file