Auto Riknomics

Had my first couple of microeconomics classes last weekend. Interesting view point on the Auto wale Bhaiyas

Well, all of us have heard atleast one story of a good Samaritan cab driver in Dubai/Japan/US who waved off some waiting charge or gave a discount or some such and look at the auto wallahs in Bangalore...

Economist's reasoning - well compare (the discount/earnings per day) for each of them - The Guy abroad gave you the discount because he could afford it.

Okay then why are the Auto wallah's in Chennai much worse than the ones in Bangalore?

Economist's reasoning - The Chennai public transportation system is much better than that of Bangalore. So the number of customers for the Chennai driver is reduced to the people who need the Auto urgently or do not want to use the public transport.

All a matter of demand and supply!! ;)

P.S. This is what I understood from the discussion...may not be the verbatim transcript of what happened in the class!

The prof - Prof V Ranganathan