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The Demand for Mobility: Evidence from an Experiment with Uber Riders

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  • Peter Christensen
  • Adam Osman

Abstract

Optimal transportation policies depend on demand elasticities that interact across modes and vary across the population, but understanding how and why these elasticities vary has been an empirical challenge. Using an experiment with Uber in Egypt, we randomly assign large price discounts for transport services over a 3 month period to examine: (1) the demand for ride-hailing services, (2) the demand for total mobility (km/week), and (3) its contributions to external costs (e.g. congestion). A 50% discount more than quadruples Uber usage and induces an increase of nearly 49% in total mobility. These effects are stronger for women, who are less mobile at baseline and perceive public transit as unsafe. Technology-induced reductions in the price of ride-hailing services could generate substantial benefits to users (4.3% of GDP) that would be accompanied by considerable increases in external costs (1% of GDP), with benefits accruing to the most affluent and costs being borne by the entire population.

Suggested Citation

  • Peter Christensen & Adam Osman, 2023. "The Demand for Mobility: Evidence from an Experiment with Uber Riders," NBER Working Papers 31330, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:31330
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    Cited by:

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    2. Christensen, Peter & Osman, Adam & Stocker, Abigail, 2024. "Weathering the ride: Experimental evidence on transport pricing, climate extremes, and future travel demand," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    3. Feld, Brian & Nagy, AbdelRahman & Osman, Adam, 2022. "What do jobseekers want? Comparing methods to estimate reservation wages and the value of job attributes," Journal of Development Economics, Elsevier, vol. 159(C).
    4. Li, Shanjun & Wang, Binglin & Zhou, Hui, 2024. "Decarbonizing passenger transportation in developing countries: Lessons and perspectives1," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    5. Osman, Adam & Speer, Jamin D., 2023. "Stigma and Take-up of Labor Market Assistance: Evidence from Two Field Experiments," IZA Discussion Papers 16599, Institute of Labor Economics (IZA).
    6. Jack Fisher, 2024. "Monopsony Power in the Gig Economy," CESifo Working Paper Series 11444, CESifo.

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    More about this item

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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