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Uber approached this like a bunch of math/econ geeks when they should have approached this like designers. Economics assumes that people who are rational, opera
by shalmanese 15y ago
Uber approached this like a bunch of math/econ geeks when they should have approached this like designers. Economics assumes that people who are rational, operating under perfect information will make optimal choices.
The problem was that the interface did not give people the information necessary which meant that sub-optimal choices were made and this is clouding the debate around surge pricing. If Uber had presented an interface that said "this ride will cost $143, do you want to proceed?" it's likely a lot more people would have hit no, the demand would not have shot up as high and it would have been a much more reasonable 2x - 3x surge.