News for hackers. Stuff that matters.

A comment on Uber's "Route-Based Pricing" Predicts How Much You're Willing to Pay. Parent comment

Re:Uber's "Route-Based Pricing" Predicts How Much You're Wil... by BurningFrog on Friday May 19, 2017 @07:31PM (#14380105)
Not a big fan of the "but we all know that..." argument by anecdote.

Economists have studied this stuff extensively for a very long time, and their consensus is that normally markets are quite effective at keeping prices down, as long as they're kept open.

There are certainly exceptions and corner cases where it works differently, but that is what they are.

[ Parent | on HN ]
Re:Uber's "Route-Based Pricing" Predicts How Much You're Wil... by vmarsy on Friday May 19, 2017 @07:44PM (#14380154)
You're right the telecom has this particularity of not being a "open market" with these big government regulations and bids for frequencies etc.

As the sibling comment points out : "Nothing's stopping Newber from showing up with a shiny new app and undercutting both". As long as this statement stays true (i.e Lyft/Uber don't abuse their dominant position to prevent competitors to enter the market), then the market should be healthy. I'm not convinced they would though.

[ Parent | on HN ]