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The parties, by agreement, may determine the standards by which the performance of those obligations is to be measured if those standards are not manifestly unreasonable. Whenever the Uniform Commercial Code requires an action to be taken within a reasonable time, a time that is not manifestly unreasonable may be fixed by agreement. c The presence in certain provisions of the Uniform Commercial Code of the phrase unless otherwise agreed, or words of similar import, does not imply that the effect of other provisions may not be varied by agreement under this section. 1 The agreement of the parties with respect to the transaction involves repeated occasions for performance by a party; and2 The other party, with knowledge of the nature of the performance and opportunity for objection to it, accepts the performance or acquiesces in it without objection. b A course of dealing is a sequence of conduct concerning previous transactions between the parties to a particular transaction that is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct. c A usage of trade is any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question. The existence and scope of such a usage must be proved as facts. If it is established that such a usage is embodied in a trade code or similar record, the interpretation of the record is a question of law. d A course of performance or course of dealing between the parties or usage of trade in the vocation or trade in which they are engaged or of which they are or should be aware is relevant in ascertaining the meaning of the parties agreement, may give particular meaning to specific terms of the agreement, and may supplement or qualify the terms of the agreement. A usage of trade applicable in the place in which part of the performance under the agreement is to occur may be so utilized as to that part of the performance. e Except as otherwise provided in subsection f, the express terms of an agreement and any applicable course of performance, course of dealing, or usage of trade must be construed whenever reasonable as consistent with each other.

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This is most clearly exemplified in the parallel emergence of Lyft, another start up based on similar principles. Just like Uber, Lyft allows anyone to become a taxi driver and much like Uber it has generated incredible popularity. So within the space of a year the taxi market underwent a huge change, from one with extreme boundaries, to one with almost none. Furthermore, if we delve into the behaviour of both these companies it can be seen that they are constantly undercutting each others prices, poaching drivers, co opting innovations and increasingly blurring the lines between the two services. This is an example in game theory called the Bertrand game, where two firms are constantly bidding prices down in order to attract market share until they reach the zero economic profit condition. Furthermore, as more companies begin to enter this taxi market such as Ingogo we can even see more characteristics of perfect competition emerging. For example Macmillan suggests that Uber, Lyft, TaxiMagic, SideCard, continue to imitate each others features, which we can identify as homogeneity of services, a fundamental tenet of perfect competition. Another key feature of Uber which has intrigued economists is the concept of price surging. Ubers business model represents one of the most basic principles of economics: increased demand raises prices and allows supply to expand. One example of this is during a snowstorm in New York in December 2013. The road conditions were terrible and there was a deficit of usual yellow taxis, leaving many stranded.