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Anyone who has taken any economics or law courses should be familiar with game theory (stag game, prisoner's dilemma, etc).
Games can be designed to prevent individual players from collaborating by rewarding defection. That's what has kept collective action from working against Uber.
Consider that if a strike is being discussed among some drivers, others will realize that a reduction in driver fleet will drive up prices/surges, encouraging defectors to drive extra and earn big. Some drivers will sit out, others will defect (scabs), and the end result is a short-term equilibrium. Strikers get discouraged and return to work with no change in long-term equilibrium.
But with dollar surge, there is no incentive for drivers to defect during a strike. Most of the price increase would be going into Uber's pockets, not their own.
For this reason I am incredulous dollar surge will take hold. I believe Uber is super corrupt. I do not think they're dumb enough to create conditions that are so conducive to collective action.
Games can be designed to prevent individual players from collaborating by rewarding defection. That's what has kept collective action from working against Uber.
Consider that if a strike is being discussed among some drivers, others will realize that a reduction in driver fleet will drive up prices/surges, encouraging defectors to drive extra and earn big. Some drivers will sit out, others will defect (scabs), and the end result is a short-term equilibrium. Strikers get discouraged and return to work with no change in long-term equilibrium.
But with dollar surge, there is no incentive for drivers to defect during a strike. Most of the price increase would be going into Uber's pockets, not their own.
For this reason I am incredulous dollar surge will take hold. I believe Uber is super corrupt. I do not think they're dumb enough to create conditions that are so conducive to collective action.