Recently, there has been a ban on surge pricing in two of India's busiest cities, namely Delhi and Bangalore.
I understand that
surge pricing is a method to maintain the balance between the supply and demand. So, it's ban would affect the taxi aggregator companies.
However, is it really doing benefit to the consumer, as the Govt. claims?
Overall, how does the ban on surge pricing affects the taxi aggregator companies, the consumers and the economy as a whole?
I have read through articles this this, however, they give a very naive explanation. So, I'm looking for something clearer from a microeconomics point of view.
PS: Delhi has an odd-even rule too (for combating excessive traffic and pollution), which means that cars with an even (registration)number [the one on the number plate] are only allowed in the even dates, and the ones with an odd number o the odd dates. For example, if I am
DL 23 BK 1900, I am only allowed on the road on even days, and not in odd days.