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We build a model to study the implications of utilization-based minimum earning regulations of the kind recently enacted by New York City for its ride-hailing providers. We identify the precise conditions under which a utilization-based minimum earnings rule causes marketplace instability, where...
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Ride-sharing platforms face a “productivity paradox”, where any efficiency gained through improved dispatch or pricing strategies will not benefit drivers or riders. We show that this is a limit of the traditional ride-hailing model, and a consequence of the Hall-Horton driver equilibrium...
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We consider a company selling heterogeneous products with prices customized for each customer and the final price is set by negotiations between sales agents and customers. This type of pricing modality is referred to as customized pricing with discretion and commonly used in insurance, consumer...
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