Personalized pricing and the value of time: evidence from auctioned cab rides
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F25%3A00636239" target="_blank" >RIV/67985998:_____/25:00636239 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/25:00646383
Result on the web
<a href="https://doi.org/10.3982/ECTA18838" target="_blank" >https://doi.org/10.3982/ECTA18838</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.3982/ECTA18838" target="_blank" >10.3982/ECTA18838</a>
Alternative languages
Result language
angličtina
Original language name
Personalized pricing and the value of time: evidence from auctioned cab rides
Original language description
We recover valuations of time using detailed data from a large ride-hail platform, where drivers bid on trips and consumers choose between a set of rides with different prices and wait times. Leveraging a consumer panel, we estimate demand as a function of both prices and wait times and use the resulting estimates to recover heterogeneity in the value of time across consumers. We study the welfare implications of personalized pricing and its effect on the platform, drivers, and consumers. Taking into account drivers' optimal reaction to the platform's pricing policy, personalized pricing lowers consumer surplus by 2.5% and increases overall surplus by 5.2%. Like the platform, drivers benefit from personalized pricing. By conditioning prices on drivers' wait times and not on consumers' data, the platform can capture a significant portion of the profits garnered from personalized pricing, and simultaneously benefit consumers.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Econometrica
ISSN
0012-9682
e-ISSN
1468-0262
Volume of the periodical
93
Issue of the periodical within the volume
3
Country of publishing house
US - UNITED STATES
Number of pages
30
Pages from-to
929-958
UT code for WoS article
001506053200008
EID of the result in the Scopus database
2-s2.0-105007667596