What Nobel Prize Winner Angus Deaton Thinks about Uber

The 2015 Nobel Prize in Economics (or, if you prefer, the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) was awarded to Princeton’s Angus Deaton “for his analysis of consumption, poverty, and welfare.”

In addition to conducting research, Deaton contributes to economic discourse through a regular poll of top economists conducted by Chicago Booth’s Initiative on Global Markets. The poll covers issues of the day, ranging from textbook prices to patent trolls—and Uber.

In September of last year, Deaton agreed—like virtually everyone else in the poll—that consumer welfare is enhanced by allowing Uber and other such services to compete with taxi companies, provided they are “on equal footing” in terms of safety requirements and are unfettered by pricing regulation. But a few months earlier, he came down hard against the idea that Uber’s practice of “surge pricing” raises consumer welfare by increasing transportation supply and distributing services to those who want them most. “Efficiency is NOT the same as welfare!” Deaton wrote. “This is probably a good policy, but some people will lose.”

If you have your own views on topics like Uber, health care, and taxes, you can take a quiz to see which of the IGM’s experts you’re most aligned with. It might just be the newest Nobel laureate.