Loading...

Estimating Demand Elasticity of Tap30 Company

Moradi Gharibvand, Reza | 2019

757 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 52032 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Madanizadeh, Ali; Joshaghani, Hosein
  7. Abstract:
  8. Access to the data of Tap30, a ride-hailing company in Iran, has allowed us to estimate the demand elasticity of online taxis. As Tap30 divides Tehran into 256 regions for pricing from Jan to June 2018, we assumed that unobservable consumer characteristics near borders are the same for adjacent regions. We used the Regression Discontinuity method to compare ride requests of people who live on two sides of borders and estimated the demand elasticity of Tap30. This research concludes that by 10 percent increase in price, the demand decreases about 3.5 percent on average in 1 hour time period. On the other hand, in 6 hours time period, the demand decreases about 7.5 percent on average by 10 percent increase in price. In addition, the demand elasticities are lower in higher prices generally. In 6 hours time period, the demand elasticity is almost 1 at lower prices and decreases to 0.6 at higher prices. By the way, in a 1 hour time period, the demand elasticity is about 0.8 at lower prices and decreases to 0.3 at higher prices. Moreover, the demand for ride-hailing travels increases when there are more online cars and the requested travels take more time
  9. Keywords:
  10. Estimating Demand Elasticity ; Regression Discontinuity Design ; Two-sided Market ; Tap 30 ; Taxi Market ; Internet Taxi

 Digital Object List