IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v208y2024ics0040162524004840.html
   My bibliography  Save this article

Scarcity and market design: How effective matching can promote the peer-to-peer sharing economy

Author

Listed:
  • Pal, Debdatta

Abstract

Scarcity is an essential issue in service marketing. This study examined scarcity in a game-theoretic setting. It focused on the role of customer evaluations, through satisfaction ratings, on a technology-enabled peer-to-peer sharing economy platform in achieving stable provider–user matching. The model shows that an appropriate market design employing a user-proposing version of Gale and Shapley's (1962) deferred acceptance algorithm for a ride-sharing platform where many users approach a few providers can help avoid congestion and ensure stable matching. To manage scarcity, the model uses a customer satisfaction rating system that modifies the widely used batch matching algorithm by matching highly rated riders much faster than their low-rated peers. A platform's ability to offer time-bound stable matching for highly-rated users during scarcity is likely to help it maintain a competitive edge.

Suggested Citation

  • Pal, Debdatta, 2024. "Scarcity and market design: How effective matching can promote the peer-to-peer sharing economy," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    • Handle: RePEc:eee:tefoso:v:208:y:2024:i:c:s0040162524004840
    DOI: 10.1016/j.techfore.2024.123686
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162524004840
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2024.123686?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Scarcity; Market design; Sharing economy;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    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:eee:tefoso:v:208:y:2024:i:c:s0040162524004840. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.