Supply and Demand Management in Ride Sourcing Markets

Supply and Demand Management in Ride-Sourcing Markets offers a fundamental modeling framework for characterizing ride-sourcing markets by spelling out the complex relationships among key endogenous and exogenous variables in the markets. This book establishes several economic models that can approximate matching frictions between drivers and passengers, describes the equilibrium state of ride-sourcing markets, and more. Based on these models, the book develops an optimum strategy (in terms of trip fare, wage and/or matching) that maximizes platform profit. While the best social optimum solution (for maximizing the social welfare) is generally unsustainable, this book provides options governments can use to encourage second-best solutions.

In addition, the book's authors establish models to analyze ride-pooling services, with traffic congestion externalities incorporated into models to see how both new platforms and government designs can optimize operating strategies in response to the level of traffic congestion.