Chapter
Aug 12, 2020
On Network Effects in the Ride-Sourcing Market with Heterogeneous Users
Authors: Junlin Zhang [email protected], Xiqun Chen, and Ze Wang [email protected]Author Affiliations
Publication: CICTP 2020
ABSTRACT
We present a model of the ride-sourcing market where users differ in their characteristics. Passenger demand is derived in terms of passengers’ value of time and willingness to pay. Driver supply is derived in terms of drivers’ value of time and willingness to accept. Demand and supply are matched based on a general bilateral matching function. Contrary to intuition, we find that both the same-side and cross-side network effects at a stationary equilibrium state can be either positive or negative, which are determined by the signs of terms called characteristic times. Characteristic times depend on factors such as distributions of user characteristics, the endogenously determined passenger waiting time and driver idle time, the returns to scale of the production of passenger-driver matchings, platform price structure, and driver cost function. A numerical experiment is presented to illustrate these theoretical findings.
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© 2020 American Society of Civil Engineers.
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Published online: Aug 12, 2020
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1College of Civil Engineering and Architecture, Zhejiang Univ., 866 Yuhangtang Rd., Hangzhou 310058, China; Ningbo Logistics and Planning Research Institute, Ningbo Transport Development Research Center, 117 Heji St., Ningbo 315042, China. Email: [email protected]
Xiqun Chen
2College of Civil Engineering and Architecture, Zhejiang Univ., 866 Yuhangtang Rd., Hangzhou 310058, China.
3College of Civil Engineering and Architecture, Zhejiang Univ., 866 Yuhangtang Rd., Hangzhou 310058, China; Dept. of Traffic Management Engineering, Zhejiang Police College, Binwen Rd., Hangzhou 310053, China. Email: [email protected]
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