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I think looking at the supply elasticity would help to determine at what rate prices have to be escalated in order to generate supply. I would also imagine tha
by brc 11y ago
I think looking at the supply elasticity would help to determine at what rate prices have to be escalated in order to generate supply. I would also imagine that the elasticity of demand is dependent upon time of day, day of week and even weather.
Mismatch between the demand elasticity and supply elasticity would be a fascinating area to explore here - when prices increase quickly enough to get driver active, perhaps they increase too quickly to match passenger demand. Ideally you could have a set of curves that predicted best market clearing on a multiple variable set and have that automatically take place.
There really isn't that many markets with variable pricing linked to a physical service or good, so I think there is a lot that can be learnt here.