Economist Tyler Cowen cautions against the optimism around self-driving cars because when costs fall, consumption rises. If the costs of driving fall, there could be a lot more cars on the (now congested) road. Cost isn’t just about price, but also understandability, beliefs, and time.
Another way to think-like-an-economist is to consider ease. Every time a how will I… question gets answered things get easier and Peloton answers a lot of questions.
A wooden barrel like this can only hold water up to the shortest piece. Each answered how will I… extends the length of that board. Extend the set and action is taken. Here’s Christian Hunt on his background to buying a Peloton:
“My partner brought it up…we had been bombarded by advertisements…I knew a few people who had them and it just got to the point where we thought, ‘Let’s just give this a go, we can return it if we don’t like it.’ And the people I spoke to about it were so positively engaged. Worse case scenario: this thing goes back.” – @ChristianHunt, Human Risk
Just in that comment Hunt hints at the many boards that lead to a Peloton purchase. There’s price (finance it!), usage (we’ve got classes), social (follow your friends), competition (leaderboards), and even logistics!
When surveyed why they bought a Peloton, 78% of people said convenience. Consciously that means convenient to use but really it is everything.
Wood Barrel, via Wikipedia.