At Chez Panisse, the restaurant in Berkeley that is credited with having created California cuisine, reservations are essential. At Mandarin Dynasty, a restaurant near the University of California San Diego, reservations are recommended. At Eli Cannon's, a restaurant in Middletown, Connecticut, reservations are not accepted.
1. a. Describe the method of allocating scarce table resources at these three restaurants.
b. Why do you think restaurants have different reservations policies?
2. Why do you think restaurants don't use the market price to allocate their tables?