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> If Lyft and Uber both raise their prices by say 50% around the same time. And there's the rub. They're playing investor-bonfire chicken. More strictly: it's
by jacques_chester 7y ago
> If Lyft and Uber both raise their prices by say 50% around the same time.
And there's the rub. They're playing investor-bonfire chicken.
More strictly: it's prisoner's dilemma. Defection is the dominant strategy.
- cma 7y agoNo, it is the iterated prisoners dilemma. Tit-for-tat increases can result in a price climb.
- jacques_chester 7y agoTrue, but their current strategy is to maximise market share. That said, it would be interesting to see what their respective price charts look like over time. A typical strategy for signalling not-technically-a-cartel price rises is to announce price raise well in advance. If the others don't match, you quietly drop it.