Economics for Managers

A Case Analysis of Uber

Uber is a ride-sharing service 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.