3 ms·
Uh, its not like surge pricing is optional to get a faster car. If they price increases, there is no subsidizing going on. To take advantage of the theoreticall
by lhc- 12y ago
Uh, its not like surge pricing is optional to get a faster car. If they price increases, there is no subsidizing going on. To take advantage of the theoretically larger supply, I will have to pay the higher price, and when the price decreases, there is no guarantee that the supply will remain high so I may still be unable to get a cab at the lower 'subsidized' price.
- judk 12y agoYou are ignoring marginal cost. If surge pricing covers relatively-fixed expenses of car mainetance etc, it enables slow-business hours to be marginally profitable at a lower price than otherwise.
- deleted 12y ago[deleted]