IDEAS home Printed from https://ideas.repec.org/a/hin/jnlmpe/5620834.html
   My bibliography  Save this article

Dynamic Pricing of Ride-Hailing Platforms considering Service Quality and Supply Capacity under Demand Fluctuation

Author

Listed:
  • Zhongmiao Sun
  • Qi Xu
  • Baoli Shi

Abstract

Increasing attention is being paid to the pricing decisions of ride-hailing platforms. These platforms usually face market demand fluctuation and reflect supply and demand imbalances. Unlike existing studies, we focus on the optimal dynamic pricing of the platforms under imbalance between supply and demand caused by market fluctuation. Dynamic models are constructed based on the state change of supply and demand by using optimal control theory, with the aim of maximizing the platform’s total profit. We obtain the optimal trajectories of price, supply, and demand under three ride demand situations. The effects of some key parameters on pricing decisions, such as coefficient of demand fluctuation, service quality, and fixed commission rate, are examined. We find the optimal dynamic price can improve the match of supply-demand in ride-hailing market and enhance the revenue of platform.

Suggested Citation

  • Zhongmiao Sun & Qi Xu & Baoli Shi, 2020. "Dynamic Pricing of Ride-Hailing Platforms considering Service Quality and Supply Capacity under Demand Fluctuation," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-26, July.
  • Handle: RePEc:hin:jnlmpe:5620834
    DOI: 10.1155/2020/5620834
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/MPE/2020/5620834.pdf
    Download Restriction: no

    File URL: http://downloads.hindawi.com/journals/MPE/2020/5620834.xml
    Download Restriction: no

    File URL: https://libkey.io/10.1155/2020/5620834?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jie Yang & Zeyu Wang & Chunming Xu & Di Wang, 2024. "The Competition Between Taxi Services and On-Demand Ride-Sharing Services: A Service Quality Perspective," Sustainability, MDPI, vol. 16(22), pages 1-25, November.
    2. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnlmpe:5620834. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.