Sunday, March 20, 2011

[vmrbnsvs] Trustable customers

A business, perhaps just starting out, wants to deal with only good customers, and is willing to forego considerable market penetration to avoid the, say, 1% of all potential customers who will cause 99% of the trouble (trying to scam the business).

This lowers transaction costs, perhaps the initial costs of starting a business.  One imagines quick oral agreements instead of lawyers, security, contracts, and fine print needed to defend yourself against the worst customers.

Create a mechanism, perhaps a service, which allows a business access to such customers.  Things can go horribly wrong, as one of the filters could be customer's skin color.  A list like this could also be abused as a list of customers a business can rip off, and they probably won't complain.

A B2B business only wants to do business with other businesses who won't cheat it.

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