You download the app, post your photos, write a witty bio. Left, right, left, right.
It’s as if you’re shopping for a partner and the app makes it seem like there are literally endless options. You tell yourself that all you need to do is keep swiping until you find “the one”.
But if the whole point of dating apps is to help you fall in love and then leave the app, why are so many people still on them years later?
In economics terms this is just a classic case of misaligned incentives. The reality is that the dating app companies only make money if you don’t end up in a lasting relationship.
The Business Model Problem
If a gym sells you a membership and you get fit, you’re going to keep paying to stay fit. If a dating app works a treat and you end up with a long term partner then you delete the app.
To stay profitable they’ve got the subscription model and the microtransactions (buying extra super likes, seeing who’s liked you, boosting your profile etc). They’re incentivised to keep you engaged just enough to keep you hopeful, but not so good that you just walk away completely.
Dating apps are all about network effects. If you’re the only person on the app it’s absolutely worthless. Its value increases as more people join. If there are millions on it then it’s a valuable platform.
However these platforms are beset by information asymmetry. You only see the profile. You don’t see how they actually behave in the real world. That leads to adverse selection in the sense that once you’ve had a bad date you’re going to have lower expectations of the next one and you’re going to walk away from the app. The high quality users will all walk away.
The Verdict: Myth Busted
Some people will certainly meet their future spouse on the app, but the business model of the app is designed to get you to spend as much time on it as possible and to keep you paying for it, not to get you to go and get married.
