2015 · 196 citations · 0 references
BusinessEconomicsTransportation PlanningPricing StrategyPricing TheoryQueuing TheoryPlatform PricingQueueing TheoryTransport EconomicsTransportation EconomicsTransportation ModelsCongestion PricingCongestion Pricing ModelsOptimal Pricing DesignOptimal Pricing PoliciesRide Sharing OperationsRide-hailing PlatformsStochastic Pricing Models
We study optimal pricing strategies for ride-sharing platforms, using a queueing-theoretic economic model. Analysis of pricing in such settings is complex: On one hand these platforms are two-sided - this requires economic models that capture the incentives of both drivers and passengers. On the other hand, these platforms support very high temporal-resolution for data collection and pricing - this requires stochastic models that capture the dynamics of drivers and passengers in the system.