Spatial differentiation and network externality in pricing mechanism of online car hailing platform

doi:10.1016/j.ijpe.2019.05.007

	Spatial differentiation and network externality in pricing mechanism of online car hailing platform
	Wu, Tian 2,3,4; Zhang, Mengbo 5; Tian, Xin 3,4; Wang, Shouyang 2,3,4; Hua, Guowei 1
刊名	INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
	2020
卷号	219 页码:275-283
关键词	Online car hailing platform Pricing mechanism Spatial differentiation Network externality Transport service market
ISSN号	0925-5273
DOI	10.1016/j.ijpe.2019.05.007
英文摘要	In order to eliminate the information asymmetry of supply and demand in transport service market, online car hailing platforms appear recent years. Almost all the transport service markets have the property of spatial differentiation, i.e, passengers' demand and vehicle supply are subject to different distributions in different regions at different time. Under the framework of two-sided market theory, this paper develops an intermediary pricing model for transport service market to evaluate the impact of spatial differentiation and network externality on online car hailing platform's pricing mechanism, based on the analysis of transport services' supply-demand matching. The analytic solution shows that the optimal price of the online car hailing platform is decided by the degree of heterogeneity in customer valuation on demand side and driver cost on supply side. Given optimal price on demand side, supply price in a region directly determines the supply of transport service in the same region, has cross effect on the supply in other region, and has indirect effect on demand price through the aggregate supply. Based on the trip record data of New York City, the simulation shows that online car hailing platform try to customize higher prices to attract more drivers and alleviate the passengers' demand pressure in morning rush hour. Furthermore, the simulation also shows that the disparity of the flow density in adjacent areas may affect the price adjustment mechanism of the online car hailing platform, and if the regional disparity further expands, the optimal choice of the platform is to increase the price of supply side, rather than the demand side.
资助项目	National Natural Science Foundation of China[71390331] ; National Natural Science Foundation of China[71831001] ; National Natural Science Foundation of China[71804181] ; National Center for Mathematics and Interdisciplinary Sciences, CAS
WOS研究方向	Engineering ; Operations Research & Management Science
语种	英语
出版者	ELSEVIER
WOS记录号	WOS:000504505100022
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/50516]
专题	中国科学院数学与系统科学研究院
通讯作者	Hua, Guowei
作者单位	1.Beijing Jiaotong Univ, Sch Econ & Management, Siyuan East Bldg, Beijing 100044, Peoples R China 2.Chinese Acad Sci, Acad Math & Syst Sci, NCMIS, Beijing 100190, Peoples R China 3.Univ Chinese Acad Sci, Sch Econ & Management, Beijing 100190, Peoples R China 4.Chinese Acad Sci, Key Lab Big Data Min & Knowledge Management, Beijing 100190, Peoples R China 5.Univ Calif Los Angeles, Dept Econ, Los Angeles, CA 90095 USA
推荐引用方式 GB/T 7714	Wu, Tian,Zhang, Mengbo,Tian, Xin,et al. Spatial differentiation and network externality in pricing mechanism of online car hailing platform[J]. INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS,2020,219:275-283.
APA	Wu, Tian,Zhang, Mengbo,Tian, Xin,Wang, Shouyang,&Hua, Guowei.(2020).Spatial differentiation and network externality in pricing mechanism of online car hailing platform.INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS,219,275-283.
MLA	Wu, Tian,et al."Spatial differentiation and network externality in pricing mechanism of online car hailing platform".INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS 219(2020):275-283.