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Freakonomics covered Uber in one of their recent episodes and a study claimed that there was a consumer surplus, with people willing to pay 50-60% more for Uber

Freakonomics covered Uber in one of their recent episodes and a study claimed that there was a consumer surplus, with people willing to pay 50-60% more for Uber than they were otherwise paying. Curious if it would actually play out that way if they had a monopoly AND raised prices that much. http://freakonomics.com/podcast/uber-economists-dream/ http://freakonomics.com/podcast/uber-economists-dream/

erispoe 10y ago
Kill the competition now, reap the customer surplus later.
tim333 10y ago
It would work out pretty well if they had a monopoly but they won't have. Their only real barrier to entry is to be able to subsidise the hell out of their service with investor money.