IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2302.14358.html
   My bibliography  Save this paper

A Unified Representation Framework for Rideshare Marketplace Equilibrium and Efficiency

Author

Listed:
  • Alex Chin
  • Zhiwei Qin

Abstract

Ridesharing platforms are a type of two-sided marketplace where ``supply-demand balance'' is critical for market efficiency and yet is complex to define and analyze. We present a unified analytical framework based on the graph-based equilibrium metric (GEM) for quantifying the supply-demand spatiotemporal state and efficiency of a ridesharing marketplace. GEM was developed as a generalized Wasserstein distance between the supply and demand distributions in a ridesharing market and has been used as an evaluation metric for algorithms expected to improve supply-demand alignment. Building upon GEM, we develop SD-GEM, a dual-perspective (supply- and demand-side) representation of rideshare market equilibrium. We show that there are often disparities between the two views and examine how this dual-view leads to the notion of market efficiency, in which we propose novel statistical tests for capturing improvement and explaining the underlying driving factors.

Suggested Citation

  • Alex Chin & Zhiwei Qin, 2023. "A Unified Representation Framework for Rideshare Marketplace Equilibrium and Efficiency," Papers 2302.14358, arXiv.org.
    • Handle: RePEc:arx:papers:2302.14358
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2302.14358
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Soheil Ghili & Vineet Kumar, 2021. "Spatial Distribution of Supply and the Role of Market Thickness: Theory and Evidence from Ride Sharing," Papers 2108.05954, arXiv.org.
    2. Iavor Bojinov & Neil Shephard, 2019. "Time Series Experiments and Causal Estimands: Exact Randomization Tests and Trading," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 114(528), pages 1665-1682, October.
    3. Hao Yi Ong & Daniel Freund & Davide Crapis, 2021. "Driver Positioning and Incentive Budgeting with an Escrow Mechanism for Ridesharing Platforms," Papers 2104.14740, arXiv.org.
    4. Fan Zhou & Shikai Luo & Xiaohu Qie & Jieping Ye & Hongtu Zhu, 2021. "Graph-Based Equilibrium Metrics for Dynamic Supply–Demand Systems With Applications to Ride-sourcing Platforms," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1688-1699, October.
    5. Ke, Jintao & Yang, Hai & Li, Xinwei & Wang, Hai & Ye, Jieping, 2020. "Pricing and equilibrium in on-demand ride-pooling markets," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 411-431.
    6. Anton Braverman & J. G. Dai & Xin Liu & Lei Ying, 2019. "Empty-Car Routing in Ridesharing Systems," Operations Research, INFORMS, vol. 67(5), pages 1437-1452, September.
    7. Kostas Bimpikis & Ozan Candogan & Daniela Saban, 2019. "Spatial Pricing in Ride-Sharing Networks," Operations Research, INFORMS, vol. 67(3), pages 744-769, May.
    8. Wang, Hai & Yang, Hai, 2019. "Ridesourcing systems: A framework and review," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 122-155.
    9. Chiwei Yan & Helin Zhu & Nikita Korolko & Dawn Woodard, 2020. "Dynamic pricing and matching in ride‐hailing platforms," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(8), pages 705-724, December.
    10. Hao Yi Ong & Daniel Freund & Davide Crapis, 2021. "Driver Positioning and Incentive Budgeting with an Escrow Mechanism for Ride-Sharing Platforms," Interfaces, INFORMS, vol. 51(5), pages 373-390, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Kenan & Nie, Yu (Marco), 2022. "Mitigating traffic congestion induced by transportation network companies: A policy analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 96-118.
    2. Zhong, Yuanguang & Zillmann, Stefan & Zhang, Ruijie & Zhou, Yong-Wu & Xie, Wei, 2023. "Vehicle repositioning for a ride-sourcing network system providing differentiated services," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 221-243.
    3. Zhu, Zheng & Xu, Ailing & He, Qiao-Chu & Yang, Hai, 2021. "Competition between the transportation network company and the government with subsidies to public transit riders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    4. Zhong, Yuanguang & Lan, Yibo & Chen, Zhi & Yang, Jiazi, 2023. "On-demand ride-hailing platforms with heterogeneous quality-sensitive customers: Dedicated system or pooling system?," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 247-266.
    5. Yining Liu & Yanfeng Ouyang, 2022. "Planning ride-pooling services with detour restrictions for spatially heterogeneous demand: A multi-zone queuing network approach," Papers 2208.02219, arXiv.org, revised Jun 2023.
    6. Li, Manzi & Jiang, Gege & Lo, Hong K., 2022. "Pricing strategy of ride-sourcing services under travel time variability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    7. Amirmahdi Tafreshian & Neda Masoud & Yafeng Yin, 2020. "Frontiers in Service Science: Ride Matching for Peer-to-Peer Ride Sharing: A Review and Future Directions," Service Science, INFORMS, vol. 12(2-3), pages 44-60, June.
    8. Nikhil Garg & Hamid Nazerzadeh, 2022. "Driver Surge Pricing," Management Science, INFORMS, vol. 68(5), pages 3219-3235, May.
    9. Ke, Jintao & Chen, Xiqun (Michael) & Yang, Hai & Li, Sen, 2022. "Coordinating supply and demand in ride-sourcing markets with pre-assigned pooling service and traffic congestion externality," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    10. Li, Xiaonan & Li, Xiangyong & Wang, Hai & Shi, Junxin & Aneja, Y.P., 2022. "Supply regulation under the exclusion policy in a ride-sourcing market," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 69-94.
    11. Guo, Xiaotong & Caros, Nicholas S. & Zhao, Jinhua, 2021. "Robust matching-integrated vehicle rebalancing in ride-hailing system with uncertain demand," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 161-189.
    12. Xu, Zhengtian & Yin, Yafeng & Chao, Xiuli & Zhu, Hongtu & Ye, Jieping, 2021. "A generalized fluid model of ride-hailing systems," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 587-605.
    13. Bahrami, Sina & Nourinejad, Mehdi & Yin, Yafeng & Wang, Hai, 2023. "The three-sided market of on-demand delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    14. Liu, Yining & Ouyang, Yanfeng, 2023. "Planning ride-pooling services with detour restrictions for spatially heterogeneous demand: A multi-zone queuing network approach," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    15. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    16. Zhu, Zheng & Ke, Jintao & Wang, Hai, 2021. "A mean-field Markov decision process model for spatial-temporal subsidies in ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 540-565.
    17. Wang, Jing-Peng & Huang, Hai-Jun, 2022. "Operations on an on-demand ride service system with express and limousine," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 348-373.
    18. Li, Shukai & Luo, Qi & Hampshire, Robert Cornelius, 2021. "Optimizing large on-demand transportation systems through stochastic conic programming," European Journal of Operational Research, Elsevier, vol. 295(2), pages 427-442.
    19. Zhou, Yaqian & Yang, Hai & Ke, Jintao & Wang, Hai & Li, Xinwei, 2022. "Competition and third-party platform-integration in ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 159(C), pages 76-103.
    20. De Munck, Thomas & Chevalier, Philippe & Tancrez, Jean-Sébastien, 2023. "Managing priorities on on-demand service platforms with waiting time differentiation," International Journal of Production Economics, Elsevier, vol. 266(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2302.14358. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.