Is Surge Pricing a fair way to manage demand
Found this on the BBC – written by Tim Hargord – author of 50 Things that Made the Modern Economy
The driver of surge pricing was the economist William Vickery
Vickrey’s basic idea was simple: when the trains were busy, charge more. When they were quiet, charge less.
Not dissimilar to our budget airlines of today – consultants call it dynamic pricing.
Early bird specials are also similar where consumers can benefit by booking early.
Today Uber manage a supply and demand mismatch with a clever algorithm.
Particularly love the idea how Coca Cola – needed a price increase so to avoid changing vending machines to accept two coins they suggested a new 7.5c coin to be introduced, sadly for them never introduced.
See link below for the full article.
https://www.bbc.co.uk/news/business-49986191
