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Except that as far as I understand it, in this case, doubling the price does increase the supply. i.e. by charging $99 for a $49 ride, provides a strong incenti
by marcamillion 14y ago
Except that as far as I understand it, in this case, doubling the price does increase the supply. i.e. by charging $99 for a $49 ride, provides a strong incentive for drivers in nearby cities to leave their current market and go to NYC.
So that DOES help the situation.
I am not sure if this is what you were arguing, but I thought I would provide some clarity :)
- jellicle 14y agoNew York City's streets and bridges are FULL. If the driver from another city comes to NYC, an NYC driver is no longer able to enter the city. No additional supply is created. I'm not sure why this is such a difficult concept to grasp.