Suppose that Uber decides that its strategy of using surge pricing during times of high demand is causing the company to receive too much bad publicity. It decides that it will maintain its regular prices even during periods of high demand.
a. If you are trying to get a ride through Uber at the end of a football game or on New Year's Eve, will you benefit from Uber's change in policy? Briefly explain.
b. Uber received criticism for using surge pricing following a severe snowstorm in Boston. Why might some people be more critical of Uber's using surge pricing after a snowstorm than using this pricing strategy on New Year's Eve? Would consumers benefit if Uber decided not to use surge pricing during snowstorms or other weather-related situations? Briefly explain.