In the passage, Reinhard Selten describes his father's business model during his childhood. This business was called a 'reading circle,' where folders filled with various magazines were lent out to customers for one week at a time before being collected and given to someone else. The cost of borrowing these folders depended on their age; newer folders came at a higher price, while older ones were more affordable. Despite its simplicity, this service was quite popular, indicating that the business thrived in providing accessible reading material.
This quote offers insights into how businesses can adapt to serve niche markets and highlight the ingenuity required for entrepreneurship. The model of circulating reading materials reflects an early form of subscription services or sharing economies, which have become increasingly common today. Moreover, it illustrates the value placed on information and entertainment during a time when not everyone could afford extensive book collections or personal subscriptions to magazines. The quote also hints at the broader cultural context, suggesting that access to literature and current affairs was important to many people in Selten's community.
Reinhard Selten is a Nobel Prize-winning economist who made significant contributions to game theory and economic science. Born in Breslau, Germany (now Wrocław, Poland), he later moved to Israel and eventually settled in Frankfurt, where his father ran the 'reading circle.' Selten’s work on game theory has had profound impacts on economics, political science, and other social sciences, providing a framework for understanding strategic decision-making.
