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Presented by MinneAnalytics. Hosted by Boston University Questrom School of Business.
Thursday, August 23 • 3:00pm - 3:30pm
Surge Pricing under Spatial Spillovers: Evidence from Uber's Operations

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Ride-sharing platforms employ surge pricing to match anticipated capacity spillover with demand. We develop an optimization model to characterize the relationship between surge price and spillover. We test predicted relationships using a spatial panel model on a dataset from Uber's operation. Results reveal that Uber's pricing accounts for both capacity and price spillover. There is a debate in the management community on the efficacy of labor welfare mechanisms associated with shared capacity. We conduct counterfactual analysis to provide guidance in regards to the debate, for managing congestion, while accounting for consumer and labor welfare through this online platform.

avatar for Marcus Bellamy, PhD

Marcus Bellamy, PhD

Assistant Professor, Boston University

Thursday August 23, 2018 3:00pm - 3:30pm
Room 324 Boston University Questrom School of Business, 595 Commonwealth Avenue Boston

Attendees (32)