Game Theory Why are DoorDash and Uber prices so high? Why share a gold medal? The traveler's dilemma
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Aug 18, 2021 The dynamics of pricing in the gig economy take center stage, as DoorDash and Uber grapple with the implications of the Decline Now movement. Listeners get a glimpse into how nostalgia influences modern convenience and nightlife. The conversation shifts to the Traveler's Dilemma, illustrating strategic decision-making through the lens of competition. Emotional connections are examined in the realms of shared gold medals among athletes, showcasing the camaraderie and psychological aspects that define competitive sports.
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Decline Now Movement
- In Bethlehem, Pennsylvania, two DoorDash drivers devised a strategy.
- They decided to decline deliveries until offered a higher fee, sparking the "Decline Now" movement.
How Decline Now Works
- Declining deliveries increases offered fees on gig platforms.
- Collective declining can raise baseline fees if all drivers participate.
Collective Action Problem
- Decline Now's success depends on driver unity.
- Individual self-interest can undermine collective action if drivers accept lower fees.