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.