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capacity

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    Scarcity & Queues Entry #0454

    The reason a queue outside is worth more than an advert

    Advertising is paid for by the seller. A queue is paid for by customers in time, which is why a venue may keep capacity below demand on purpose.

    Adept
    The hidden part #0454

    Waiting is a display of demand paid for by the people waiting. Capacity held back is a budget line that never appears.

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    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.

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    Scarcity & Queues Entry #0473

    Why capacity constraints improve service reputation

    Past a threshold, serving more people means serving each one worse. A cap holds the per-customer quality that the reviews are actually reporting.

    Adept
    The hidden part #0473

    Attention per customer is the divided resource. Capacity added past the threshold spends the reputation that created the demand.

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