Each New Year’s Eve, Uber institutes “surge pricing.” The latter is no revelation. Uber recognizes that in order to meet the needs of its customers (demand), it must serve its drivers equally well (supply). As a consequence, Uber raises the prices it will charge its customers as a way of getting more of its drivers on the road. Customers are only too happy to pay up so that they can enjoy all the fun without having to get behind the wheel.
It all raises a basic question: are the price surges evidence of “inflation”? Before answering the previous question, it’s worth noting that Uber’s been quite a bit more expensive in the aftermath of the coronavirus lockdowns. Was this inflation? No to the first question, and no to the second. Obviously.
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