3 ms·
Only 2 major sellers does not make a market perfectly competitive by any stretch of the imagination, but I digress. The classification point is interesting tho
by rtpg 11y ago
Only 2 major sellers does not make a market perfectly competitive by any stretch of the imagination, but I digress.
The classification point is interesting though. If there's forced lock-in to only Uber or Lyft, then I can't see there not being mass lawsuits about misclassification of workers. The status quo is already almost 50/50 in terms of the IRS classification checklist.
- netcan 11y agoPerfect only exists in models. Also, you might think of it as thousands of sellers but only two buyers. In any case, competitiveness has to do with more than the number of actors. Switching costs are pretty low and information is very available. That counts for a good amount. Two buyers/sellers can be still create a competitive market in the right circumstances, with collusion being the biggest danger. Also, drivers still have the option of getting business in other ways. Generally though I agree that the market needs more players, for the employee vs sole trader debate and for competitiveness reasons.
- eevilspock 11y ago> Also, you might think of it as thousands of sellers but only two buyers. The relevant terms are Oligopsony and Monopsony. https://en.wikipedia.org/wiki/Oligopsony https://en.wikipedia.org/wiki/Oligopsony