Too Good to be False

As the saying goes, “If something seems too good to be true, it probably is.” That’s wise… most of the time. But every once in a while an exception slips through because everyone thinks that way.

I took my family recently to a busy event at a small location. Normally no more than a few people at a time would be at this place, but because of the special event, there were maybe ten times the normal number. The already limited parking was overwhelmed and there wasn’t a spot to be had for several blocks around the place. My intention was to drop my family off out front and then go find a spot myself and walk (the classic Dad maneuver).

Instead, I found one open spot directly in front of the building and parked there.

My oldest daughter was shocked. We had seen people drive right past that spot in front of us and then turn down a side street, obviously also looking to park and go to this event. Why had the spot remained open?

But one quick look and I knew why. Because we’re used to a spot directly in front of an establishment to be “reserved” in some way – a loading zone, a handicapped parking spot, something like that. And if such a spot had no cars in it, that surely must be why, right? A free spot right in front is simply “too good to be true.” Everyone thinks that way, so everyone passes that spot right by.

I pulled in. (And after I had pulled in, I checked to make sure I hadn’t missed any signs, but nope – just a normal spot on the street.)

The “efficient market hypothesis” is an economic term that’s basically summarized as “there are no $20 bills on the sidewalk.” The idea is that if there are any free & easy gains, someone will have already grabbed them. There are no $20 bills on the sidewalk because someone will have already picked them up.

That’s generally true – but that “someone” could still, every once in a while, be you. So if you do see a $20 bill on the sidewalk (or a suspiciously convenient parking space), don’t cheat yourself out of it just because you doubt the good fortune. You can always check for signs once you’re parked.