Earlier quoted context omitted.
No, it's entirely rational to judge a service based on external signals. If you need medical treatment, will you go to a doctor operating out of an office, or a doctor operating out of their own garage? Theoretically, either one could be good or bad at medicine, but in practice, professionalism is a useful signal. An ugly AI-generated menu shows a naive disregard for the actual experience of your customers. This atti…
>If you need medical treatment, will you go to a doctor operating out of an office, or a doctor operating out of their own garage? Theoretically, either one could be good or bad at medicine, but in practice, professionalism is a useful signal. Is it a garage that has the same hygiene standards and medical equipment as an office? Your metaphor kinda falls apart here, because those are not orthogonal to the medical ser…
Maybe! A garage can be cleaned very thoroughly, especially if you renovate with that in mind. I wouldn't bet on it, though. A good doctor probably could operate out of a garage, but they wouldn't. And a good restaurateur would take time to think about their menu.
These signals select for people with domain knowledge and experience. Status has nothing to do with it. Even the cheapest street food will be evaluated against its competition based on external signals, and so better, more experienced vendors will tend to know how to present themselves well.
All else being equal, would you rather eat a hot dog from a cart with a nice sign, or from a guy sitting on the sidewalk who sharpied "Hotdog $3" on a piece of cardboard?