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RE: Algorithms To Live By #5: Optimal Stopping And Parking In The City
Thank you for bringing the specifics! Now I know the actual range of prices. You are completely right, the prices cannot be truly dynamic because you cannot start charging $50 per hour. Specially considering how economic differences have become wider over the last decades. Furthermore, you hit on another important aspect, consumers have been trained to pay the same price for "the same" product. To the naked eye of a consumer, it is not easily perceptible what the occupancy rate of a neighborhood is. Maybe if people understood the principle behind these different prices, they would be more willing to accept it and expand it.
I know this is not a bulletproof solution, but I think it a good approach.
It is an excellent approach. Didn't mean to sound negative on the whole article. I have read or seen Shoup interviewed before...good stuff.