Wouldn't perfect individualised dynamic pricing mean that the seller (Uber in this case) would get to capture the entire consumer surplus? Is that good?
Yes but also that some people would be getting a service that they otherwise wouldn’t be able to afford. But there’s little/no incentive for a pure seller to do that, although for a marketplace like Uber there is more possibility for that, in order to maintain liquidity on the other side of the transaction. I listened to an interview where Uber CEO Dara K note there is always an incentive pool, and based on the market it is either riders or drivers who are getting the incentive money at any given time.
