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Surge pricing of a limited resource is not exactly "price discrimination" in the way that term is used traditionally in economics. Per wikipedia: "Price discrim
by mehrdada 5y ago
Surge pricing of a limited resource is not exactly "price discrimination" in the way that term is used traditionally in economics. Per wikipedia: "Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices..."
In the case of surge pricing, there is just not enough goods or services to sell, so you simply dynamically increase the price in response to demand akin to an auction, not selling it more expensively to a subset of customers simply because they can pay and to others for lower prices (which presumes a supply surplus exists). In other words, an "Uber ride at rush hour" is not a substantially similar product to "Uber ride in off-peak time".