Double or Nothing

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This would be a winning strategy for the seller, given that the value of the product is less than what they charge.
- I don't think so. They're still making the exact same revenue per sale on average. The cost isn't relevant here, another way of looking at it is in the case the customer pays nothing they've lost the cost of the goods and the profit they would have otherwise made, so it evens out.
  It works out well for the seller if, by providing the option to gamble on the product, they increase sales, which I would guess it would (at the expense of being morally grey).
  
  It entices people to buy/play when they may be on the fence or not that interested, so it is probably a net positive.
  And say it is 50/50 odds then and the product is 50 bucks to make and $100 to sell. If they do double or nothing they lose $50 cost(and no profit) and next one (doublel they make $200 ($50+ $150 profit) So 2 items with total product cost of 100 brings in $200 so $50 profit over both sets.
  So it seems company does same business, but a chance of luring in potiental extra sales on the gamble
  
  You're right actually, come to think of it. Their revenue would be the same overall.
  
  You’re forgetting that the house always wins
  
  The truth is, the game was rigged from the start.
  
  Assuming the odds are 1:1. It's implied but not explicitly stated, which suggests it's probably not 1:1.
  Edit: yes, I know this is a meme.
- This would be a winning strategy for the seller ~~given that the value of the product is less than what they charge.~~
  Yes! Yes, indeed!
- It also takes one ~~potential~~ guaranteed buyer off the market, the value is whatever people are willing to pay for it meaning they would be losing the exact amount of value they were changing.
- Nah it works out the exact same. Say you make $10 every time you sell a $100 product. That means you have a 50/50 chance of either gaining $110 or losing $90. 110*0.5 + (-90)*0.5 = $10.
  
  Who said the odds were 50:50? >!Lol!<

68 comments