Answers: Black Friday

What do you think about retailers opening on Thanksgiving? What role do consumers and businesses play in balancing this holiday with demand for sales?

FROM OUR INBOX

Black Friday shopping has become what is known as a Prisoner's Dilemma in game theory, for both retailers and consumers. In the retailers' game, it can be set up as Store A vs. Not Store A.

Payoffs for retailers are profits. By acting in their own self-interest, they open earlier than the other store to try to gain the business of the consumers. This is known as the penalty payoff, or mutual defection. If Store A waits to open, they arrive at the sucker payoff (little to no profits), while Not Store A that opened earlier arrives at the temptation payoff (all profits). The solution is inferior because retailers don't end up gaining any extra profits because all the other retailers open early as well. Stores also have to pay their workers holiday wages, so they end up incurring more costs than if they waited to open. If all retailers collude and stay closed on Thursday, waiting to open until Friday, they can reach the superior solution.

The prisoner's dilemma for shoppers is similar: Shopper A vs. Not Shopper A.

Payoffs for shoppers are 'good deals.” Shoppers also arrive at an inferior solution because they each act individually and compete with one another, knowing that the longer they wait - the worse chance they have of getting the deal. Therefore they all go out earlier and earlier, missing valuable time with their families on Thanksgiving. If Shopper A decides to wait, but Not Shopper A goes out early, then Shopper A will arrive at the sucker payoff (no good deals), while Not Shopper A arrives at the temptation payoff (all deals). If all shoppers collude and stay home on Thanksgiving and wait until Black Friday to go shopping, then we can arrive at the superior solution.

A superior solution exists. Retailers can achieve the same profits with lower costs. Shoppers can achieve the same deals with less stress. This also allows shoppers and workers to spend more time with their families on Thanksgiving.

It is possible for both parties to reach the superior solution through cooperation. However, because this is a one-shot game (occurs only one time - Friday after Thanksgiving), the temptation to defect, open or shop early, is overwhelming. Shoppers are too tempted by deals to wait until Friday if they think their deal will be gone, and retailers are too tempted by profits to stay closed until Friday if they think their sales will go down. This is why we constantly arrive at the inferior solution.

Bethany L.

Cedar Rapids

'''

FROM FACEBOOK

' Debbie M.:

There are many that work on holidays. Not all are 'emergency” jobs. I worked for hotels for years and missed many, many holidays. It is what it is. If you don't want to shop on holidays, then don't. There are many out there that don't have family nearby and would love to have something to do. I remember working my first job at Bishops Buffet and there were many older folks that came in on Thanksgiving because they didn't have anyone to spend time with. It was heartbreaking, but I was proud to have spent the day with them. I just don't think it is anyone's business if a store wants to stay open. It's their business to do with what they want.

' Roger E.:

Its all about money, anymore!!!

' Rhonda S.:

I will not be shopping on Thanksgiving. This is getting out of hand. Nothing is sacred anymore. I feel old (in my 40s) because I remember when you actually got paid time and a half for working on Sundays. That went away and I'm sure many employers would be open all holidays if they could get by with it. Ridiculous!

' Mel R.:

The retailers can do whatever they want. They have little effect on my shopping, how I spend my money or my time. I follow the advice of my Jewish Carpenter friend.

' Dan H.:

As more people are going out to eat and watching movies on Turkey Day, it makes sense that people would also want shopping as a part of that night. We are in a society that loves ‘activity' so many people are not about sitting at home and talking about the family good old days anymore (not to mention less nuclear families) but in creating new traditions.

' Bev B.:

If people are supposed to spend the holidays with family, how does that work for nurses, doctors, firemen, police, etc.? My family has had to shuffle our holiday schedule for the last 28 years because my sister is a registered nurse and works many holidays. We have always worked around her schedule, especially since she works 12-hour shifts (7 p.m. to 7 a.m.). And we haven't missed a holiday get-together yet, even when our children grew up and started careers, families, etc. We don't always have the gatherings on the actual holiday, but we do celebrate Thanksgiving, Christmas, Easter, etc.

' Rich B.

You people don't want to know my feelings on this subject.

' Dana N.:

As another friend of mine pointed out, why has no one complained about grocery stores, gas stations, restaurants, hospitals, etc. being open on that day? My husband has to work every holiday at ADM, they don't get it off for family time. If you don't agree with shopping stores being open on that day don't go out. For some, they need the extra money working at those retailers on that day. Many celebrate the holiday at different times. How many have had Thanksgiving the weekend before or after or on Friday? It is another day on the calendar.

' Becca G.:

Avoiding both days, help me retain faith in humans. All the fighting and greed, just to save a few dollars, No thank you.

' Karen B.:

I will not do any shopping on Thanksgiving Day and likely won't on Black Friday, definitely not during the crowded rush. Other than medicine, what could I possibly need on Thanksgiving Day that is more important than someone else getting to stay home with family and/or friends?

' Andy R.:

Just use the thing called the Internet. Much easier.

' Matthew N.:

Why blame the stores? The problem is the customers that shop on these days - the businesses are merely responding to the customers. If there weren't enough shoppers on these days to justify the payroll, the stores wouldn't be open.

' Michael J.:

Not fair corporate gets day off while the stores have to work. What has happened to us and families. Holidays use to be happy times growing up. Now it's a bunch of greed.

' Deb O.:

Boycott!!!!!!!

' Iris F.:

My family is having our Thanksgiving the day before actual Thanksgiving, because my boyfriend and I both have to work Thanksgiving Day and Black Friday. I don't think either of us really care, work is work, we knew far in advance we'd be scheduled those dates!

' Joanne H.:

Why cant they wait till after Thanksgiving?

' Carol L.:

It's all about greed for the almighty dollar! Shame on those stores who take family time for gain. I always looked forward to getting up the next day to shop, but I refuse to shop on Thanksgiving. you steal from my family that would stay and enjoy a day of Thanksgiving, but think they have to run to a store during meal time, so they can save $50! Shame, shame on you!!!

' Brian U.:

The more things change the more they same the same.

' Sharon S.:

Malls and those types of stores should be closed on Thanksgiving Day. The world has become too greedy. They'd rather go shopping than spend time with loved ones.

' KaLynn K.:

Nothing anyone says is going to change the fact that the stores are going to be open on Thanksgiving Day. It boils down to who thinks that they 'need” whatever it is that the stores are offering to entice them to come buy. I am thankful for what I have, you shoppers can have my share of the super bargains. Please be nice to the folks who have to work for you!

' Amy M.:

I worked at a gas station that was opened 365 days a year and no holidays off for me. It would've been nice to spend the whole day with my family not just an hour or two.

' Angel H.:

Sleeping in Friday ... most likely going to hit the gym while everybody is out killing each other.

' Valorie B.: Many, MANY people work on holidays. Hospitals and nursing homes are always open. If you don't want to shop on a holiday, then don't. Many people need the money to pay their bills. Holiday pay is usually time and a half.

' Lisa J.:

I love cyber Monday. You can get good deals at home in my comfortable PJs.

' Esther R.:

Sorry Michael Jarrard You cannot blame Wal-Mart. Kmart has been open for years on Thanksgiving!!!

' Joshua B.:

I don't go out for any reason on holidays. If you plan accordingly you don't need to. Use the Internet for good deals. Rushing to the stores on thanksgiving and black Friday to buy a bunch of stuff. No thanks. Gotta love America.

' Chad W.:

Ask the Native Americans if they care on a slow news day?

' Laura W.:

Will not shop these days.

' Laurie W.:

Not for me are any of these places open.

' Mary P.:

I heard the best sales are actually the weekend before Thanksgiving.

' Chandra J.:

I don't shop on Thanksgiving. I never will. I used to LOVE getting up early to shop on Black Friday but that's ruined now. It's corporate greed, nothing else.