Zakharenko, R. (2023) Pricing shared vehicles. Economics of Transportation, 33, 100296. (doi: 10.1016/j.ecotra.2022.100296)
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Abstract
This paper analyzes profit-maximizing pricing in a model of shared vehicle (SV) market, with particular emphasis on spatial inequality of demand. I show that the best policy assigns a score to every location, and rewards (penalizes) customers for relocating the vehicle to a place with higher (lower) score. Such spatially explicit pricing enables providers to expand the vehicle dropoff “home” area into otherwise unprofitable low-density suburban areas and into for-fee parking zones. A greater geographic coverage has positive spillovers on operations within the initial home area. The empirical part of the paper uses novel microdata on SV trips to develop a strategy to estimate demand parameters, extrapolate them into larger counterfactual home area, evaluate optimal location scores, and predict profit gains from the expansion.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Zakharenko, Dr Roman |
Authors: | Zakharenko, R. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Economics of Transportation |
Publisher: | Elsevier |
ISSN: | 2212-0122 |
ISSN (Online): | 2212-0130 |
Published Online: | 06 February 2023 |
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