Fairness in Demand and Pricing Dynamics

Surge pricing during peak demand, like Uber's practice, raises questions about fairness. Prohibiting surge pricing could lead to lower availability of rides, as drivers may leave if they don't earn adequate fares. This results in unmet demand, contradictory to the intention of fairness. Similarly, in concert ticket sales, if prices are set too low for high demand, it creates a market for resale where profits go to resellers rather than original sellers. Thus, allowing prices to adjust according to demand can prevent unmet demand and ensure fair market practices.