The Economics Behind Sim Lim Scams

[Confuseous]

The likelihood of a tourist returning to the same shop is low. Hence, the profit maximizing concept suggests that it is best to extract as much value as possible from a tourist, since it is likely to be the one and only transaction between the two parties. A business may try overcharging a tourist as long as it believes it can get away with it.

Therefore, it was not surprising that the two individuals highlighted in the scams above were foreign nationals, whom the shop staff at Sim Lim probably recognized as tourists.

Asymmetric Information

On the other hand, locals may easily be cheated as well due to asymmetric information. Asymmetric information refers to the situation where one party has more information about a product than the other, and hence is able to take advantage of this fact.

For products such Apple’s iPhone, most would already have known that Apple....http://dollarsandsense.sg/the-economics-behind-simlim-scams/

 

[johnny333]

This reminds me of the scam that is practised in Patpong in Bangkok. Tourists are told that they can watch the sexy show for free however when they try to leave after the show, they are told that they have to pay an unreasonable amount for the show & drinks. The doors are locked to prevent them from leaving.

If you are a victim of such cons you can approach the tourists police for help. In Spore there is is no such recourse.

 

[frenchbriefs]

So basically what u saying we are most likely going to buy a HDB flat once or twice in our lives(big ticket item),so the HDB board must do everything in its power to scam us out of as much money as possible.HDB tender flat construction to tiongs company for 98 million,HDB sell to us for 200 million,result 102 million profit from one HDB block.

 

[danielsim]

This reminds me of the scam that is practised in Patpong in Bangkok. Tourists are told that they can watch the sexy show for free however when they try to leave after the show, they are told that they have to pay an unreasonable amount for the show & drinks. The doors are locked to prevent them from leaving.

If you are a victim of such cons you can approach the tourists police for help. In Spore there is is no such recourse.

Sometimes the tourists police are corrupted themselves. We in fact have nowhere to redress our grievances if so happen

 

[eErotica69]

Sometimes the tourists police are corrupted themselves. We in fact have nowhere to redress our grievances if so happen

Well the tourist police in Thailand are ok.

Can't say that about the rest of the Royal Thai police though. Any input from Jotys?

 

[Putin]

In Hawaii where tourism is important the Hawaii state government has a policy that if a tourist reports a crime and the charge requires a court hearing, the Hawaii state will give a free return ticket to the victim to come again to Hawaii to testify...In Hong Kong where there were similar problems some years ago in TST the

 

[johnny333]

Sometimes the tourists police are corrupted themselves. We in fact have nowhere to redress our grievances if so happen

OK, the tourist police "may" help

In Spore the police will simply shrug their shoulders & claim they can't do anything.