Question

In: Economics

Some businesses actively work to make it clear that the business owners are devoutly religious (two...

Some businesses actively work to make it clear that the business owners are devoutly religious (two fast food restaurants come to mind: In-n-Out Burger, which puts Bible verses on cups and plates, and Chik Fil A - which goes so far as to be closed on Sundays). For this question, let’s specifically look at devoutly Christian businesses, for whom both Heaven and Hell are possible afterlife outcomes. Explain how the bold proclamation of their Christianity might be a strategic move for these businesses, especially to customers who fear dishonesty in commercial transactions.

This question is related to game theory

Solutions

Expert Solution

This could surely be a strategic move as by their bold proclamation of christianity makes their goodwill very high as compared to their competitors and the reason behind that is as they seem to be quite religious people tend to trust them more and it is very obvious that you would go to a place you trust more than any other place.

Also, as mentioned above coustmers who fear dishonesty in commercial transactions would aslo trust them more because they are a huge believer of god they would not charge them more or be dishonest to them.


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