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...

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Publicado en:Econometrica Vol. 93; no. 3; pp. 929 - 959
Autores principales: Buchholz, Nicholas, Doval, Laura, Kastl, Jakub, Matejka, Filip, Salz, Tobias
Formato: Artículo
Publicado: Wiley-Blackwell May2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May2025
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      pub: Wiley-Blackwell
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        185839956
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        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
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