Most of the “mechanisms which prevent competitive pricing” is monopoly. Network effect is “just” a natural monopoly, where the first success gains so much ground that competitors can’t really get a start. Another curiosity is the difference between average cost and marginal cost. One more user does not cost $40. But, especially in growth mode, the average cost per user (of your demographic) is probably higher than you think—these sites are profitable, but not amazingly so.
None of this invalidates your anger at the inadequacy of the modern dating equilibrium. I sympathize that you don’t have parents willing to arrange your marriage and save you the hassle.
I didn’t know about either of those concepts (network effects being classified as a natural monopoly and the average vs. marginal cost). Thanks!
While I am frustrated by the current dating landscape, I think dating apps are probably a net positive – before they were popular, it was impossible to discover as many people. And while arranged marriages probably have the same level of satisfaction as freely chosen marriages, I’m glad that I have to find my own partner. It adds to my life a sense of exploration and uncertainty, incentivizes me to work on becoming more confident/attractive, and helps me meet more cool people as friends.
Most of the “mechanisms which prevent competitive pricing” is monopoly. Network effect is “just” a natural monopoly, where the first success gains so much ground that competitors can’t really get a start. Another curiosity is the difference between average cost and marginal cost. One more user does not cost $40. But, especially in growth mode, the average cost per user (of your demographic) is probably higher than you think—these sites are profitable, but not amazingly so.
None of this invalidates your anger at the inadequacy of the modern dating equilibrium. I sympathize that you don’t have parents willing to arrange your marriage and save you the hassle.
I didn’t know about either of those concepts (network effects being classified as a natural monopoly and the average vs. marginal cost). Thanks!
While I am frustrated by the current dating landscape, I think dating apps are probably a net positive – before they were popular, it was impossible to discover as many people. And while arranged marriages probably have the same level of satisfaction as freely chosen marriages, I’m glad that I have to find my own partner. It adds to my life a sense of exploration and uncertainty, incentivizes me to work on becoming more confident/attractive, and helps me meet more cool people as friends.
Or maybe I’m just rationalizing.