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What is Understanding Matching Markets in Economics about?

Matching markets attempts to describe the formation of mutually beneficial relationships over time by matching supply and demand. An example is the Uber transportation service app, which matches drivers and riders. It controls supply and demand by raising prices when demand is higher to incentivize one rider to book, equalizing supply and demand. Uber also offers a carpool option at lower prices but with the compromise of sharing the ride. Matching markets ensures an efficient process that satisfies both bu

Author

Anil K Luniya

Language

EN