"Vickrey's basic idea was simple: when the trains were busy, charge more. When they were quiet, charge less."

#SurgePricing #MicroEconomics #Incentives #Nudge #InformationAsymmetry #MoralHazard #AdverseSelection https://www.bbc.co.uk/news/business-49986191
Is surge pricing the fairest way to manage demand?

Ride-hailing app Uber is far from the first company to change prices according to customer numbers.

https://www.bbc.co.uk/news/business-49986191
William Vickrey postumously received the Nobel Prize having been awarded the #NobelPrize some three days before his death...

#SurgePricing #MicroEconomics #Incentives #Nudge #InformationAsymmetry #MoralHazard #AdverseSelection

https://en.wikipedia.org/wiki/William_Vickrey
Often the seller knows more than the buyer...

#SurgePricing #MicroEconomics #Incentives #Nudge #InformationAsymmetry #MoralHazard #AdverseSelection

https://en.wikipedia.org/wiki/Information_asymmetry
... which can lead people to make bad choices

#SurgePricing #MicroEconomics #Incentives #Nudge #InformationAsymmetry #MoralHazard #AdverseSelection

https://en.wikipedia.org/wiki/Adverse_selection
... perhaps deliberately

#SurgePricing #MicroEconomics #Incentives #Nudge #InformationAsymmetry #MoralHazard #AdverseSelection

https://en.wikipedia.org/wiki/Moral_hazard
... which can distort markets to deliver poor outcomes

#SurgePricing #MicroEconomics #Incentives #Nudge #InformationAsymmetry #MoralHazard #AdverseSelection

https://en.wikipedia.org/wiki/The_Market_for_Lemons
#SurgePricing no longer requires an army of pricing specialists. Companies can match supply and demand with real-time data and smart #Algorithms

But consumers can feel exploited by #DynamicPricing https://www.bbc.co.uk/news/business-49986191
Is surge pricing the fairest way to manage demand?

Ride-hailing app Uber is far from the first company to change prices according to customer numbers.

https://www.bbc.co.uk/news/business-49986191
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