> Making something more expensive will actually lower costs?
Yes, this isn't uncommon. Besides the example you gave of developing new methods, if costs are high due to supply shortages causing production delays, then increasing the price of those supplies can lower overall costs if it results in higher and more predictable supply.
In the case of the supply shortage of NYC roadway space I do not know if $15 is high enough to lower travel times, but if it is then I can absolutely see it lowering delivery costs.
As a thought experiment, if someone built private tunnels throughout lower Manhattan that allowed drivers to bypass most traffic and charged $15 per day for access, what fraction of delivery drivers would choose to pay that versus sit in traffic and make fewer deliveries?
Yes, this isn't uncommon. Besides the example you gave of developing new methods, if costs are high due to supply shortages causing production delays, then increasing the price of those supplies can lower overall costs if it results in higher and more predictable supply.
In the case of the supply shortage of NYC roadway space I do not know if $15 is high enough to lower travel times, but if it is then I can absolutely see it lowering delivery costs.
As a thought experiment, if someone built private tunnels throughout lower Manhattan that allowed drivers to bypass most traffic and charged $15 per day for access, what fraction of delivery drivers would choose to pay that versus sit in traffic and make fewer deliveries?