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Fight Club - The Recall Coordinator's Formula

Montag Beeblebrox · 250.9K views · 2009-12-29 · 1:34

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Overview

A two-minute clip from the film Fight Club in which the narrator, a former recall coordinator, explains the formula companies use to decide whether a recall costs more than paying out settlements.

On Hacker News

Cited whenever a thread shows a company weighing cost against safety or customer harm.

Discussed on HN; no positive recommendation is recorded in this export · HN mentions 2020–2026

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What people said

hcazz · 2026-01 · Reference

[VIDEO] Not sure you understand how "The Formula" works. The profit generated by adding this feature will outweigh the cost of any resulting accidents that they take liability for. A less pessimistic way of phrasing it is that within the boundaries they've defined, their self driving system is so much better than a human that they're willing to assume responsibility for crashes deemed "at-fault" while using the system. Not intentionally trying to compare that with other automakers, but Mercedes is the only "you can buy now" vehicle (ignoring robotaxis/Waymo/others) that assumes liability with those capabilities. Until other automakers provide that legal guarantee, they're parlor tricks at best that will continue to get folks killed in scenarios that they otherwise wouldn't had they been actually paying attention.

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collingreen · 2025-11 · Reference

> Take the number of vehicles in the field, A, multiply it by the probable rate of failure, B, then multiply it by the result of the average out of court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one. [VIDEO]

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Mawr · 2025-11 · Reference

None of this is true. A company left to their own devices will optimize for maximum profit at the cost of literally everything else. Every cost of their business that's possible to externalize will be externalized. Every corner will be cut in the name of marginally better profits. For example, you say lawsuits are costly. To a company, that's meaningless. The only question is, is the cost of a lawsuit greater than the money saved cutting corners? If not, it's better to kill people and deal with the lawsuits: [1]. Moreover, companies are still run by people, and people have biases. Most notable of which is the short-term thinking bias that results in companies irrationally optimizing for short-term gains, compromising long-term ones. And what fits perfectly into that trap? Yep, safety. Do you know how much money you could save by delaying maintenance? Lots, lots of money to be had right now vs a nebulous concept of potentially higher chance of an accident at some uncertain point in the future. The monkey with its primitive brain chooses the immediate reward every time. [1]: [VIDEO]

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Sources

Video by Montag Beeblebrox, played through YouTube.

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