Topic:Driving the Drivers: Algorithmic Assignment in Ride-Hailing

Lecturer:Zhe Yuan

Zhe Yuan is a researcher at the 100-person Program, School of Economics, Zhejiang University.He graduated from Peking University and the University of Toronto, and is a visiting scholar at Harvard University. His main research areas are industrial economics and platform economics, and his research focuses on empirical research on the economic impact of algorithms, data value and data privacy, and network economy. He has published (or received) a number of papers in top international journals (including AEJ-micro,Rand, Management Science, Information Systems Research) and served as an academic consultant for several head platform companies to conduct joint research.

Abstract:

This paper investigates the impact of algorithmic assignment on worker behavior and welfare within the ride-hailing industry. We demonstrate how algorithms can impose a flexibility penalty on gig workers, despite their ostensible schedule autonomy. We document a preferential assignment algorithm that favors more committed drivers using rich transaction data from a leading ride-hailing company. Drivers favored by the algorithm earn 8% more hourly than non-favored drivers. Eliminating preferential assignment could raise ride fares by 7.79%, adversely affecting consumers and the platform. On the other hand, an additional 10% of drivers would switch to flexible schedules,leading to a 3.51% surplus gain, especially benefiting young, male, and local drivers.

Time:4:00-5:00p.m,October 17th,2024

Venue:B321,Zhixin Building,Central Campus