Who Benefits From Surge Pricing?

• 成果类型: Article
• 署名作者: Castillo, Juan Camilo
• 署名单位: University of Pennsylvania
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA19106
• 发表日期: 2025
• 页码: 1811-1854
• 关键词: frictions; work

摘要

New technologies have recently led to a boom in real-time pricing. I study the most salient example, surge pricing in ride hailing. Using data from Uber, I develop an empirical model of spatial equilibrium to measure the welfare effects of surge pricing. The model is composed of demand, supply, and a matching technology. It allows for temporal and spatial heterogeneity as well as randomness in supply and demand. I find that, relative to a uniform pricing counterfactual in which Uber sets the overall price level, surge pricing increases total welfare by 2.15% of gross revenue. Welfare effects differ substantially across sides of the market: rider surplus increases by 3.57% of gross revenue, whereas driver surplus and the platform's current profits decrease by 0.98% and 0.50% of gross revenue, respectively. Riders at all income levels benefit. Among drivers, those who work long hours are hurt the most, especially women.