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New research by Hanna Halaburda, an economist at the Bank of Canada and former Harvard Business School professor, Mikolaj Piskorski, professor of Strategy and Innovation at IMD Business School in Switzerland, and Wharton marketing professor Pinar Yildirim finds that not only can companies offer limited choices to consumers and still successfully compete with their peers, but may also be able to charge more.“You want to satisfy the customer and you want the customer to find the best possible match, so the idea of limiting options at first sounds really counterintuitive,” Yildirim notes.“The secret sauce of e Harmony is that it does not allow you to browse; it gives you a limited number of choices.In matching environments such as the world of online dating and labor markets, it’s not enough to find someone you like — you also have to find someone who likes you back.Competition is the name of the game, and if the field is crowded, how is a person able to stand out?Anecdotal evidence is on the Millennials’ side; more than half say someone in their social circle has had a relationship that started on a dating site.As online dating becomes more commonplace and accepted, young love seekers are taking to the Web more willingly than their elders.So you have fewer choices, but so do the people with whom you’ve been matched.So when you write to them, your chances of getting a reply are higher.” In “Competing by Restricting Choice: The Case of Search Platforms,” the authors focus on the online dating scene — specifically, on e Harmony and
In terms of long-term economic security, it is better to partner with someone who makes ,000 annually but lives below their means, than someone who makes 0,000 a year but spends wildly and racks up debt.“Money itself is not nearly as important as are money habits,” says Robert Braglia, a financial planner in New York.
While Match offers a free platform that allows users to search for potential partners with few restrictions, e Harmony charges a subscription fee and shows people fewer possible mates with the promise that its matching algorithm will offer a better shot at a long-term relationship.
The researchers created a model to determine how each type of business approach could successfully coexist within the market.
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Are you looking for someone relatively similar in qualities like income and education (“market theory”)?