4 ms·
> This is an unfulfilling thing to say perhaps, but price gouging is actually beneficial in producing more supply when it's needed. Okay, I'll bite: how? Wha
by jellicle 14y ago
> This is an unfulfilling thing to say perhaps, but price gouging is actually beneficial in producing more supply when it's needed.
Okay, I'll bite: how? What level of Uber price gouging will, for example, cause an unflooded subway to be constructed within the next few weeks? Maybe quadruple pricing would do it?
- airlocksoftware 14y agoAs Uber said in one of the tweets quoted in the linked article, by increasing the fare they increased their supply of drivers by 50%. I.e. since they were being paid more, more drivers decided to work more hours. This is the expected result from the application of basic economics. It has nothing to do with unflooding subways; just more drivers working longer hours because they want to get paid more.
- kamaal 14y agoThat is besides the point. Why the hell should a cab driver instead of being safe with this family and that too during a hurricane drive you around for a everyday price? The purpose of increasing the fare, is to motivate the driver to drive during the time of a hurricane. This has nothing to do with other things and was never meant to be. There is a shortage in supply, the demand automatically increases. The only way he can prioritize his work is by offering his services to the highest bidder. He is in business earning just like us. He didn't take a oath to serve selflessly regardless of his own problems. When the programmer salaries go high because of the demand, do you willingly take a pay cut? Why then do we apply different standards to other professions?