4 ms·
Surge pricing does not increase supply, and by design it does not decrease demand to the point where demand is less than supply. The end result is that exactly
by semi-extrinsic 2y ago
Surge pricing does not increase supply, and by design it does not decrease demand to the point where demand is less than supply. The end result is that exactly the same number of people can buy exactly the same products.
The only difference is that companies make more money from selling the same products, and that products in short supply are distributed more towards the people with deeper pockets.
- gruez 2y ago>The end result is that exactly the same number of people can buy exactly the same products. Right, but arguably with surge pricing it can put the limited supply into people who need it the most. Without price gouging laws/price controls, no matter how badly/ambivalent about buying the milk, you'll buy it. Upping the price forces everyone to weigh how badly they need the milk, and ensures that people who need it the most gets it. Of course, the usual caveat of "willingness/ability to pay =/= neediness" applies, but price is probably the best mechanism we have short of setting up a Bureau of Rationing and having everyone fill out a 10 page application justifying why they need milk.
- deleted 2y ago[deleted]
- deleted 2y ago[deleted]
- senordevnyc 2y ago"Surge pricing" comes from Uber, where it absolutely can increase supply. If you're a part-time driver not working and then prices are suddenly double or triple, you might decide it's worth it to go make hay while the sun shines.