Essays on the economics of ride hailing

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In the last decade, new technologies have led to a boom in dynamic pricing. I analyze the most salient example, surge pricing in ride hailing. Using data from Uber in Houston, I develop an empirical model of spatial equilibrium to measure the welfare effects of surge pricing. My model is composed of demand, supply, and a matching technology. It allows for temporal and spatial heterogeneity as well as randomness in supply and demand. I find that, relative to a counterfactual with uniform pricing, surge pricing increases total welfare by 3.53% of gross revenue. The gains mainly go to riders: rider surplus increases by 6.97% of gross revenue, whereas driver surplus and platform profits decrease by 1.97% and 1.42% of gross revenue, respectively. Disparities in driver surplus are magnified. Riders, on the other hand, are overwhelmingly better off


Type of resource text
Form electronic resource; remote; computer; online resource
Extent 1 online resource
Place California
Place [Stanford, California]
Publisher [Stanford University]
Copyright date 2020; ©2020
Publication date 2020; 2020
Issuance monographic
Language English


Author Castillo Hernandez, Juan Camilo
Degree supervisor Gentzkow, Matthew
Thesis advisor Gentzkow, Matthew
Thesis advisor Athey, Susan
Thesis advisor Einav, Liran
Degree committee member Athey, Susan
Degree committee member Einav, Liran
Associated with Stanford University, Department of Economics.


Genre Theses
Genre Text

Bibliographic information

Statement of responsibility Juan Camilo Castillo
Note Submitted to the Department of Economics
Thesis Thesis Ph.D. Stanford University 2020
Location electronic resource

Access conditions

© 2020 by Juan Camilo Castillo Hernandez
This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

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