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Estimating Price Elasticity of Labor Supply in Ride-sharing Markets (Case Study: Tapsi)

Abbasian, Saeed | 2019

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 53029 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Madanizadeh, Ali; Joshaghani, Hossein
  7. Abstract:
  8. Because of flexibility in labor supply, ride-sharing market is a good platform for estimating drivers’ working hours in response to hourly earning changes. In this research using ride-sharing markets’ data and controlling for geographic effects and time and individual fixed effects, we have estimated 0.0129 for price elasticity of drivers’ working hours. Literature has focused on estimating the elasticity in time horizons shorter than a day (non-stop active hours), while in this paper we have also estimated the elasticity in daily horizon.We have also analyzed the heterogeneity of different types of drivers (Full-Time or Part-Time, Tehran or non-Tehran Plates, Gender and Experience) in days of the week and hours of the day and then show that by increasing working hours of drivers, the elasticity is increasing at first and after a pick of 0.0129 it decreases. Drivers with Tehran plates are more elastic in comparison to drivers with non-Tehran plates. They are more elastic in Fridays in comparison to Tuesdays and they have lowest elasticity in other days of the week. The maximum elasticity during a day is in 18 and 19, in middle hours of the day (11 and 12) the elasticity is lower and in the morning (7 and 8) it is the least. New-comers in comparison to experienced drivers are more elastic, but the more experienced drivers become, they would be more elastic and considering gender shows that women are more elastic than men
  9. Keywords:
  10. Labor Supply Elasticity ; Dynamic Pricing ; Online Ride-Hailing ; Ride-Sharing Market ; Tap 30

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