Uber surge pricing: sound economic theory, bad business practice
As reported on The Verge. By Ben Popper Adjusting for supply and demand makes sense on paper, but fails to understand basic consumer psychology When the snow started falling in New York City this past weekend, the prices for a ride in an Uber car began rising. It’s part of the company’s long-standing policy of “surge pricing”: using an algorithm that raises prices to adjust for demand. Uber says the higher prices motivate more drivers to…