Personalized Pricing and the Value of Time: Evidence From Auctioned Cab Rides.
We recover valuations of time using detailed data from a large ride‐hail platform, where drivers bid on trips and consumers choose between a set of rides with different prices and wait times. Leveraging a consumer panel, we estimate demand as a function of both prices and wait times and use the resu...
| Publicado en: | Econometrica Vol. 93; no. 3; pp. 929 - 959 |
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| Autores principales: | , , , , |
| Formato: | Artículo |
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Wiley-Blackwell
May2025
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=185839956&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 185839956 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00129682 ECN jtl: Econometrica issn: 00129682 maglogo: Y pubinfo: dt: May2025 vid: 93 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 185839956 10.3982/ECTA18838 ppf: 929 ppct: 30 formats: tig: atl: Personalized Pricing and the Value of Time: Evidence From Auctioned Cab Rides. aug: au: Buchholz, Nicholas Doval, Laura Kastl, Jakub Matejka, Filip Salz, Tobias affil: Department of Economics, Princeton University Economics Division, Graduate School of Business, Columbia University NBER CEPR Charles University The Economics Institute of the Academy of Sciences of the Czech Republic Department of Economics, MIT su: Consumption (Economics) Economic impact Time-based pricing Ridesharing services Consumers' surplus Taxi service Value (Economics) sug: subj: Consumption (Economics) Economic impact All Other Support Activities for Transportation Taxi Service Time-based pricing Ridesharing services Consumers' surplus Taxi service Value (Economics) keyword: demand in transportation markets platforms price discrimination ride hail transportation markets Value of time demand in transportation markets platforms price discrimination ride hail transportation markets Value of time ab: We recover valuations of time using detailed data from a large ride‐hail platform, where drivers bid on trips and consumers choose between a set of rides with different prices and wait times. Leveraging a consumer panel, we estimate demand as a function of both prices and wait times and use the resulting estimates to recover heterogeneity in the value of time across consumers. We study the welfare implications of personalized pricing and its effect on the platform, drivers, and consumers. Taking into account drivers' optimal reaction to the platform's pricing policy, personalized pricing lowers consumer surplus by 2.5% and increases overall surplus by 5.2%. Like the platform, drivers benefit from personalized pricing. By conditioning prices on drivers' wait times and not on consumers' data, the platform can capture a significant portion of the profits garnered from personalized pricing, and simultaneously benefit consumers. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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