Time: 2023/03/02 (Thu.), 15:00 – 16:30 (Beijing Time)

Title:  Driving the Drivers: Algorithmic Wage-Setting in Ride-Hailing

Venue: Zhonghui Building 106

About the speaker:

袁哲博士，浙江大学经济学院百人计划研究员，多伦多大学博士。袁哲的专业方向是产业经济和数字经济，主要兴趣包括网络经济（航空网络与电信网络），平台经济（平台增长与平台治理），和数据价值与数据隐私。他的论文发表（或即将发表）于AEJ-micro, Management Science等国际顶尖刊物刊物，主持国家青年自科项目，参与多项国家自科重大课题。

Abstract:

Using transaction data from a ride-hailing company in Asia, we document algorithmic wage-setting and study its impact on worker behavior. Drivers favored by the algorithm earn 8% more hourly than non-favored drivers. We construct and estimate a two-sided market model with time-varying demand and dynamic labor supply decisions. Without the preferential algorithm, platform revenues reduce by 12% and total surplus by 7% in the short term. In the long run, raising rider fares re-balances demand and supply, resulting in minimal welfare loss. Moreover, an additional 10% of drivers would switch to flexible schedules; young, male, and local drivers benefit more.