3 ms·
>That's just good economics. Fasten clearly understands economics and incentives far better than Uber does. It sounds like an auction. It's a clever system, b
by forgetsusername 11y ago
>That's just good economics. Fasten clearly understands economics and incentives far better than Uber does.
It sounds like an auction. It's a clever system, but I don't think it represents a more fundamental understanding of economics than Uber's system, which is to raise prices to induce supply to match demand.
- dragonwriter 11y ago> It sounds like an auction. It's a clever system, but I don't think it represents a more fundamental understanding of economics than Uber's system, which is to raise prices to induce supply to match demand. Uber's system is a central planner trying to simulate the results of a two-sided auction by centrally setting prices to try to achieve a desired result given supply and demand signals. Fasten's system strips out the simulation and just is an auction, which allows supply and demand to align without requiring central planning. I think its pretty fair to describe the latter as evidencing a better understanding of economics.
- toomuchtodo 11y agoEspecially since its been proven that surge pricing doesn't incentivize more supply. http://www.washingtonpost.com/news/wonkblog/wp/2015/04/17/how-uber-surge-pricing-really-works/ http://www.washingtonpost.com/news/wonkblog/wp/2015/04/17/ho...