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by nbouscal
3904 days ago
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> Only across riders who can afford the surge price. It's the utility-minimizing choice for the rest. It's really not. Without surge pricing, the people who can't afford surge pricing experience significantly worse outcomes as well. Specifically, they end up with very high wait times and cancellation rates, which ends up being a lot worse than the counterfactual world in which they saw the surge pricing and decided to take the subway instead. We have solid evidence for this: http://faculty.chicagobooth.edu/chris.nosko/research/effects... |
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There is nothing unavoidable about that.