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

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  • Farajallah, Mehdi
  • Hammond, Robert G.
  • Pénard, Thierry

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.

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  • Farajallah, Mehdi & Hammond, Robert G. & Pénard, Thierry, 2019. "What drives pricing behavior in Peer-to-Peer markets? Evidence from the carsharing platform BlaBlaCar," Information Economics and Policy, Elsevier, vol. 48(C), pages 15-31.
    • Handle: RePEc:eee:iepoli:v:48:y:2019:i:c:p:15-31
    DOI: 10.1016/j.infoecopol.2019.01.002
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    2. 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).
    3. Dianzhuo Zhu, 2022. "Ridesharing: Its potential, challenges, and future in France," Working Papers hal-03994900, HAL.
    4. 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.
    5. 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.
    6. Ivaldi, Marc & Palikot, Emil, 2023. "Sharing when stranger equals danger: Ridesharing during Covid-19 pandemic," Transport Policy, Elsevier, vol. 141(C), pages 221-231.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    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. 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.
    16. 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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