The UC Irvine transportation economist Kevin Roth points out that L.A.’s subway has been estimated to relieve $1 to 4 billion worth of congestion every year in that city, where the share of people riding the subway is relatively low. ”If a few extra vehicles [off the road] can cause that in L.A., it’s not far-fetched that extra Uber vehicles circling around 24-7 will generate congestion costs that wipe out a nontrivial share of this consumer surplus,” Roth says.

For the full story, please visit http://www.citylab.com/commute/2016/09/uber-consumer-surplus/500135/.

 

© UC Irvine School of Social Sciences - 3151 Social Sciences Plaza, Irvine, CA 92697-5100 - 949.824.2766