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Aquinas and Uber: The Justice of Surge Pricing
Author(s) -
Azzi Thomas
Publication year - 2020
Publication title -
new blackfriars
Language(s) - English
Resource type - Journals
eISSN - 1741-2005
pISSN - 0028-4289
DOI - 10.1111/nbfr.12476
Subject(s) - incentive , economic justice , economics , surge , service (business) , microeconomics , business , economy , engineering , electrical engineering
A significant demographic event or the advent of a natural disaster sees a surge in demand for a particular good or service. Conventional liberal market economics dictates that vendors should increase their prices to restore equilibrium to the market. Such an increase in price would provide an incentive for vendors to increase output or redirect their resources to those areas where there is a peak in demand. In the case of ride‐share operators such as Uber, this is reflected in their surge pricing models to encourage drivers to service those areas where demand has spiked. Is such an increase in price justified according to the ethical principles of St. Thomas Aquinas' economic philosophy?