The fact that one company repeatedly bought out its competition and now owns, according the the article, 45 dating apps probably has a lot to do with why they suck. Instead of competing by trying to be better, just buy out the rivals, gut them, and make everything worse. As long as the dominant player has lots of capital to buy any upstarts and the regulatory environment lets them do it, it can be an easier way to ma…
By standard Economic theory, that is not a stable strategy, since it incentivises starting new dating apps. It only has to be moderately successful to ensure a profitable exit. Over time, Match would run out of money. Given that Economists overwhelmingly get these things right more than our intuitions, I'm really curious what explanations they have.
It might, but there are lots of sticky things in human behaviour. A person fully aware of the situation in your statement, and only looking for money may do so, but the vast majority of people (off HN) likely do not have the skills (tech/business), do not care about the skills, might not want to start a company or simply are happy enough with their life to not want to rock the boat too much.
Here's a mathematical question: if you could flip a coin, with a 50% chance of getting a billion dollars, and a 50% chance of never having more than $1000 in your bank, would you flip the coin?
The "mathematically correct" answer would be to take the bet, but the rational decision any well-settled person would take is very likely not to flip.