3 ms·
It’s hard to get empirical evidence for the general claim that Uber increased mobility after adjusting for substitution effects from walking etc. However, I thi
by spacebanana7 5y ago
It’s hard to get empirical evidence for the general claim that Uber increased mobility after adjusting for substitution effects from walking etc. However, I think one can make the case from economic intuition that price reductions generally increase consumption in a category of normal goods.
E.g - a reduction in the price of wheat will increase food consumption even after accounting for people switching from other crops. Conversely, an increase in the price of Lego will reduce the amount of toys the average child gets, even after adjusting for the substitution to action figure etc.