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Price sensitivity doesn't depend on every user obsessively tracking prices. If Lyft becomes a better deal, a vanguard of users notice it, they word of mouth it
by aetherson 9y ago
Price sensitivity doesn't depend on every user obsessively tracking prices.
If Lyft becomes a better deal, a vanguard of users notice it, they word of mouth it, and the equilibrium shifts somewhat. Not all the way, there are price insensitive users. But there are also price sensitive ones too.