Uber is a ride-sharing service that started in 2009. If you are not familiar with Uber, you can learn more about the services it provides at Uber.com. Construct an eight-page analysis of Uber using the following criteria. Analyze the market before Uber’s entry. Describe the inefficiency Uber exploited. Explain Uber’s surge pricing in the context of shifts in supply and demand. Evaluate Uber’s surge pricing in the context of price discrimination. Apply the concepts of economies of scale and economies of scope to Uber’s business model. Apply the concepts of game theory to Uber’s market. Assess Uber’s potential for international expansion and potential trade policy issues. Explain the incentive pay model Uber uses and how it affects the principal-agent problem. Discuss any asymmetric information issues with Uber’s business model.
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