Driver collusion in ride-hailing platforms under competition
Loading...
Authors
Mohamadi, Navid
Date
2023-09-27
Type
other
Language
en
Keyword
Alternative Title
Abstract
The rise of on-demand service platforms has become an integral part of modern life, with intermediaries facilitating the matching of service providers and consumers. This study focuses on the competitive dynamics of ride-hailing platforms and explores the influence of drivers' collusion on market outcomes. By examining the interplay between earning-sensitive drivers and price- and waiting-time-sensitive riders, this study adopts a game-theoretic perspective to analyze the effects of collusion in a two-sided market. Negative externalities, represented by network congestion, are incorporated to reflect real-world scenarios such as surge pricing during peak hours. The research aims to fill a gap in the existing literature by simultaneously investigating the impacts of both competition and collusion in the context of on-demand service platforms. By considering factors such as supply-induced price fluctuations and riders' time sensitivity, this study provides insights into the complex dynamics of these platforms and their implications for market outcomes.