Read the article about Uber titled “In Praise of Efficient Price Gouging (Links to an external site.)” from the MIT Technology Review. You can also use Wikipedia as a source for more background information (Links to an external site.) on Uber. You should include a brief summary of the article and then an argument either supporting or refuting it. To produce a decent response, I expect at least one double-spaced full page. Some questions to keep in mind are the following (these do not necessarily have to be addressed, but they are intended to help focus and streamline your response):
- Put yourself in the shoes of an Uber customer. Why is “surge pricing” so annoying? What is your outside option if you want to avoid “surge pricing?”
- Put yourself in the shoes of an Uber driver. Do you like surge pricing (and hence “surge pay”)?
- Put yourself in the shoes of a business owner. If you could get every customer to pay higher prices at certain times, would you want to do that? What are the benefits/drawbacks to that pricing behavior?