Question

Although Uber has become a very popular alternative to driving oneself or taking a cab, some cities do not allow Uber to operate in their location. One objection people have to Uber is the practice of charging higher fares late at night or during bad weather, when more people want to hire an Uber driver. Based on the material covered in this course, write a short essay evaluating Uber’s “peak pricing” policy. Should it be allowed or not? Explain your reasoning, drawing upon the materials of this course. Depending on how concisely you write, one paragraph can be sufficient to answer this question. Just state your position and then justify it with an economic argument that draws upon the materials covered in this course so far.

Answer 1