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What drives pricing behavior in Peer-to-Peer markets? Evidence from the carsharing platform blablacar

Author

Listed:
  • Mehdi Farajallah

    (ESC Rennes School of Business - Rennes SB - Rennes School of Business)

  • Robert G Hammond

    (NC State - North Carolina State University [Raleigh] - UNC - University of North Carolina System)

  • Thierry Pénard

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

We examine how price and demand are determined on peer-to-peer platforms and whether experience and reputation have the same impact as in traditional markets. We use data from the world's leading intercity carsharing platform, BlaBlaCar, which connects drivers with empty seats to riders. We find that pricing decisions evolve as drivers gain experience with the platform. More-experienced drivers set lower prices and, controlling for price, sell more seats. Our interpretation is that more-experienced drivers on BlaBlaCar learn to lower their prices as they gain experience; accordingly, more-experienced drivers earn more revenue per trip. In total, our results suggest that peer-to-peer markets such as BlaBlaCar share some characteristics with other types of peer-to-peer markets such as eBay but remain a unique and rich setting in which there are many new insights to be gained.

Suggested Citation

  • Mehdi Farajallah & Robert G Hammond & Thierry Pénard, 2019. "What drives pricing behavior in Peer-to-Peer markets? Evidence from the carsharing platform blablacar," Post-Print halshs-02012097, HAL.
    • Handle: RePEc:hal:journl:halshs-02012097
    DOI: 10.1016/j.infoecopol.2019.01.002
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02012097v1
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    Cited by:

    1. Zegners, Dainis, 2017. "Building an Online Reputation with Free Content: Evidence from the E-book Market," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168293, Verein für Socialpolitik / German Economic Association.
    2. Julene Paul, 2025. "Hitchhiking on the digital highway: Assessing the costs and benefits of informal ridesharing," Transportation, Springer, vol. 52(3), pages 983-1014, June.
    3. Monchambert, Guillaume, 2020. "Why do (or don’t) people carpool for long distance trips? A discrete choice experiment in France," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 911-931.
    4. Jinzhao Du & Ying Lei, 2022. "Information design of matching platforms when user preferences are bidimensional," Production and Operations Management, Production and Operations Management Society, vol. 31(8), pages 3320-3336, August.
    5. Ciro Troise & Elia Ferrara & Mario Tani & Ornella Papaluca, 2020. "Perspectives of the App Economy: Tenets of the Innovative Phenomenon," International Business Research, Canadian Center of Science and Education, vol. 13(3), pages 1-1, March.
    6. Wells, Peter & Wang, Xiaobei & Wang, Liqiao & Liu, Haokun & Orsato, Renato, 2020. "More friends than foes? The impact of automobility-as-a-service on the incumbent automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    7. Dianzhuo Zhu, 2022. "Ridesharing: Its potential, challenges, and future in France," Working Papers hal-03994900, HAL.
    8. Yeung, Timothy Yu-Cheong & Zhu, Dianzhuo, 2022. "Intercity ridesharing to the rescue: Capacity flexibility and price stability of BlaBlaCar during the 2018 French railway strike," Transportation Research Part A: Policy and Practice, Elsevier, vol. 164(C), pages 270-290.
    9. Isac Olave-Cruz & Maïté Stéphan & Alexandre Volle & Dianzhuo Zhu, 2025. "Does Carpooling Reduce Carbon Emissions? The Effect of Environmental Policies in France," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(4), pages 1111-1144, April.
    10. Dalia Perkumienė & Milita Vienažindienė & Biruta Švagždienė, 2021. "The Sharing Economy towards Sustainable Tourism: An Example of an Online Transport-sharing Platform," Sustainability, MDPI, vol. 13(19), pages 1-18, October.
    11. Le Goff, Alix & Monchambert, Guillaume & Koning, Martin, 2025. "Effects of numerical platforms on individual choices and social welfare: The case of short-distance carpooling," Economics of Transportation, Elsevier, vol. 41(C).
    12. Ru Jia & Shanshan Wang, 2021. "Investigating the Impact of Professional and Nonprofessional Hosts’ Pricing Behaviors on Accommodation-Sharing Market Outcome," Sustainability, MDPI, vol. 13(21), pages 1-16, November.
    13. Dianzhuo Zhu, 2021. "The Limits of Money in Daily Ridesharing: Evidence from a Field Experiment in Rural France," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 161-202.
    14. Monchambert, Guillaume, 2020. "Why do (or don’t) people carpool for long distance trips? A discrete choice experiment in France," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 911-931.
    15. Thierry Blayac & Patrice Bougette & Jules Duberga, 2025. "Share the Ride: The Determinants of Long-Distance Carpooling Pricing Strategies in France," GREDEG Working Papers 2025-47, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    16. André, Francisco J. & Arguedas, Carmen & Rousseau, Sandra, 2024. "Strategic pricing, lifespan choices and environmental implications of peer-to-peer sharing," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    17. Ivaldi, Marc & Palikot, Emil, 2023. "Sharing when stranger equals danger: Ridesharing during Covid-19 pandemic," Transport Policy, Elsevier, vol. 141(C), pages 221-231.
    18. Dowling, Katharina & Manchanda, Puneet & Spann, Martin, 2021. "The existence and persistence of the pay-per-use bias in car sharing services," International Journal of Research in Marketing, Elsevier, vol. 38(2), pages 329-342.
    19. Olga Abramova, 2022. "No matter what the name, we’re all the same? Examining ethnic online discrimination in ridesharing marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1419-1446, September.
    20. 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.
    21. Muhammad Ishfaq Khan & Syed Afzal Moshadi Shah & Mudassar Ali & Abdullah Faisal Al Naim, 2024. "To Sustainably Ride or Not to Ride: Examining the Green Consumption Intention of Ride-Hailing Services in the Sharing Economy by University Students," Sustainability, MDPI, vol. 16(20), pages 1-18, October.

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