This Is Why Surge Pricing Might Be Right | Future IQ

Ever wondered why your Uber fare doubles when it rains, or why Wendy’s decided to try AI-powered surge pricing for burgers? Is dynamic pricing just another way for companies to squeeze more money from you — or does it actually help fix hidden problems in the market? In this episode of Future IQ, we dive into the surprising truth behind fixed prices vs dynamic pricing. From the Supreme Court of India questioning hospital rates, to Goa effectively banning Uber and Ola, to movie tickets that once sold “in black” — you’ll see how price controls can sometimes make things worse, not better. But surge pricing isn’t always the hero either. When bottled water prices shoot up during a natural disaster, or electricity bills soar in a heatwave, it feels more like exploitation than smart economics. So when is dynamic pricing good, and when does it cross the line into pure greed? And why do we, as humans, hate unpredictable prices so much — even when they solve shortages? Watch till the end to find out why even the Supreme Court seemed confused, and why you might actually benefit from paying more during peak times. Also, don’t miss our earlier episodes on Supply & Demand and how substitutes & complements play tricks on your wallet. More Videos: The Invisible Supply & Demand in Our Everyday Life: https://youtu.be/imweTGK0Myk Choices Are Ruining Your Life: https://youtu.be/LjeOHVfXYOY The World Is Getting Better That You Think: https://youtu.be/2l0jnwf-2kA Are You Paying More Than Others?: https://youtu.be/gyyVUjInirg Hope you enjoyed FutureIQ by Navin Kabra and Shrikant Joshi. Do hit us up on Twitter: @ngkabra http://twitter.com/ngkabra @shrikant https://twitter.com/shrikant Listen it on the podcast provider of your choice: https://tapthe.link/FutureIQRSS 00:00 Introduction 00:23 Surge Pricing For Burgers - Wendys 01:15 Is Fixed Pricing Better? 01:58 Black Market of Autowalas 03:40 Coldplay & Scalping 05:51 Table Reservations In NY 07:37 Surge Pricing vs Fixed Pricing - Which is better? 08:58 How to fix this problem? 09:56 Benefits of Surge Pricing - Innovation 12:14 Surge pricing for fixing the supply 13:24 What happens when Demand & Supply Match? 14:08 Surge Pricing is a bad idea! 16:55 How to achieve the equilibrium? 19:05 Where did Wendy go wrong? 21:00 Economics and psychology go hand in hand. 21:59 Dynamic Pricing: good or bad? Sources: Tim Hardford on Swifties, vacations, and hygiene Restaurant booking scalpers in New York Supreme Court on fixed prices in private hospitals https://arstechnica.com/information-technology/2024/02/wendys-plans-ai-powered-menu-to-change-food-prices-based-on-demand-weather/ #FutureIQ #Pricing #SurgePricing #Uber #Wendys #Economics #Goa #IRCTC