consider a remote town in which two restaurants, all-you-can-eat café and goodgrub diner, operate in a duopoly. both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the cleaning.

Currently, as of february 2016, an american traveling in france would be by the exchange rate. the weakness of the euro and the strength of the us dollar means that items in france cost less to an american than they otherwise would. of course, if this trend reverses and the us dollar weakens and the euro strengthens, such as was happening in early 2008, an american traveling in france would have an adverse experience because items would cost relatively more.