Sunday November 01, 2015
Why surge pricing leads to surging tempers
The pricing algorithms behind Uber's surge pricing model can be an effective way to manage supply and demand -- so why do so many consumers hate it so much?
Jodi Beggs is an Economics lecturer at Northeastern University and writes the blog Economists Do It With Models. She explains what behavioural economics can tell us about consumer perception of dynamic pricing models like Uber's.
Also, surge pricing as art!
L.A-based band YACHT tied Uber's surge pricing to people's ability to watch a video for their new single. Listen to Nora's interview with band members Claire Evans and Jona Bechtolt:
Watch the video:
And, surge pricing as drinking game!
At the Reserve Bar Stock Exchange in London, England the prices of drinks rise and fall just like the stock market on the bar's spirit and beer markets. Listen to Nora's interview with Alan Grant, the bar's owner:
See the drink exchange board in action!
The Serge Pricing Show
Spark re-imagines the hot issue of surge pricing in a short skit starring the king of dynamic commerce -- Serge Pricing!