Tipping did bring some drivers ato ober, but the long tor effect was surprisingly small. The amount of driving around with an empty car, in its effect on wages, exactly off s the effect of the tips on wages. So you add tipping to the ap, drivers supply more labor hours. Some drivers come off the couch cause they see, wow, i can get tips now. Some drivers work more hours. And that's like a great econ one o one story about how we've come to a new equilibrium in market.
Economist John List of the University of Chicago talks about his book, The Voltage Effect, with EconTalk host Russ Roberts. He discusses what determines scalability and argues that the only good ideas that count are those that scale. Along the way, he draws on his experiences as chief economist of Uber and Lyft to peer inside the black box of ride sharing.