Solution
Ayan answered on
Nov 17 2022
WRITTEN ASSIGNMENT 2
WRITTEN ASSIGNMENT
Table of contents
Surge & congestion pricing 3
Types of Auction 4
The English and Dutch Auctions 4
Sealed bid auction and vickrey auction 5
Wells Fargo consumer-facing banking division 6
Recommendation 7
References 9
Surge & congestion pricing
According to my understanding, congestion pricing is a dynamic pricing technique expected to control interest by raising expenses while keeping up with a similar degree of supply. This method of regulating street traffic is where the word "congestion" originates (Lehe, 2019). Congestion pricing, often known as "surge" or "value" pricing, tacks on an extra fee for services that see cyclical or transient peaks in demand. It is intended to persuade consumers who have the flexibility to shift their consumption away from busy times and toward times when the service or resource is more affordable. The price is not fixed in dynamic or surge pricing, which is a congestion pricing approach. Instead, it varies according to shifting variables, such as seasonal fluctuations in demand, the kinds of clients being targeted, or shifting market dynamics. Businesses that offer a service, such as those in the hospitality, transportation, and travel sectors, frequently use dynamic pricing strategies. Although the pricing for surges and congestions may look identical, they have quite distinct effects on supply capacity. When there is a shortage, surge pricing causes the price to go up, which lowers the quantity sought while simultaneously increasing the quantity supplied and the number of providers. AI systems that imitate sudden adjustments to market equili
ium use surge prices. Uber has employed this strategy. Uber raises pricing when a driver's wait time for orders indicates a spike in demand. The reduced price reduces the number of requests for rides and increases the number of drivers ready to take them. The market for rides is pushed to quickly adapt by this dual effect, which sees an increase in supply while a concu
ent decline in demand. Congestion or peak load pricing cannot achieve the dual effect of both supply and demand adjustment. Peak load or congestion pricing works similarly to charging the toll for morning or evening rush-hour trips into or out of the city, as well as for trips to and from sporting events, concerts, and other special events. Some drivers are compelled to use alternate routes, such as party buses or public transportation, due to price increases. However, the availability of roads cannot be altered. In other words, the peak load price solely influences quantity required and does not have any bearing on quantity provided.
Types of Auction
The English and Dutch Auctions
The English auction, the most well-known sort of auction, is much of the time used to sell things like workmanship, wine, collectibles, and different things. The most minimal price the auction is prepared to take for that thing is the initial bid, which may be $0. The auctioneer will then, at that point, request progressing bids, frequently expanding the foreordained bid, after the purchaser has paid interest on that sum. This happens until nobody will build their bid, so, all in all, the auction is finished and the triumphant bidder gets the thing for the sum they advertised. This style of the auction is alluded to as the first award auction since the victor pays his bid. Also in the first auction, the Dutch auction is decaying (Braghin, Cimato, Damiani & Baronchelli, 2018). All in all, the auction begins at a more prominent price than you expect the thing to be downloaded at and afterward drops it until the purchaser at last shouts, "Mine!" The thing was consequently conveyed to the purchaser at the price he had set. The technique is rehashed when further things are conveyed until each thing has been sold. Speed is one of the Dutch auctions' key advantages. The auction method takes less time since there have never been a larger number of bids than it. They are used in regions like bloom...