Why Do Prices Go Up When You're Short on Time?

Imagine you're in a hurry and need to get somewhere fast. A taxi driver knows that if you're rushing, you’ll pay more because you don’t have time to wait for cheaper options. That’s urgency pricing, when people are in a rush, they’re willing to pay more right away.

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Examples

A taxi ride costs twice as much when you're running late for work.
You buy the last slice of pizza at a higher price because you're hungry and in a hurry.
You pay extra to get your favorite movie ticket just before it starts.

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Categories: Economics · time· pricing· economics of urgency· consumer behavior· demand and supply