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This kind of corporate skirting of campaign finance limits is something weve always suspected goes on, but we rarely get to see direct evidence of it. More interesting, though, were the stories about political payoffs. In 2001, CDR hired a consultant named Ron White, a Philadelphia bond attorney who happened to be the chief fundraiser for then mayor John Street. CDR gave White two tickets to the 2003 Super Bowl in San Diego plus a limo a gift worth $10,000. As his guest, White took Corey Kemp, the city treasurer for Philadelphia, who, 16 days later, awarded CDR a $150,000 contract to advise the city on swap deals. But that wasnt the end of the gravy train: CDR doled out those swap deals to selected banks, who in return kicked back $515,000 to CDR for steering city business their way.
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Another key feature of Uber which has intrigued economists is the concept of price surging. Ubers business model represents one of the most basic principles of economics: increased demand raises prices and allows supply to expand. One example of this is during a snowstorm in New York in December 2013. The road conditions were terrible and there was a deficit of usual yellow taxis, leaving many stranded. In this instance Uber increased its fares up to six fold. While many customers have labelled this as price gouging, it achieved its intended effect of incentivising drivers to hit the roads and meet the demand willing to pay these prices. This phenomenon is so intriguing because unlike many markets, demand and supply adjustments are made instantaneously. Although this is not a perfect bidding market, but rather algorithm based pricing, it still fascinating to see information immediately reflected in prices. Overall, the case of Uber is truly a fascinating one from an economic standpoint. It showcases the power increasing technology has in transforming markets and equipping consumers and suppliers with information. Perhaps the most incredible aspect is the fact that in the case of Uber these economic concepts and changes appear quickly right in front of our eyes.
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