Effectiveness of supply-side financial incentives in ride-hailing networks with spatial demand imbalance and strategic drivers

Work in progress

Philipp Afèche, Andre Cire, Uta Mohring
2025

Cite

APA Click to copy
Afèche, P., Cire, A., & Mohring, U. (2025). Effectiveness of supply-side financial incentives in ride-hailing networks with spatial demand imbalance and strategic drivers.

Chicago/Turabian Click to copy
Afèche, Philipp, Andre Cire, and Uta Mohring. “Effectiveness of Supply-Side Financial Incentives in Ride-Hailing Networks with Spatial Demand Imbalance and Strategic Drivers” (2025).

MLA Click to copy
Afèche, Philipp, et al. Effectiveness of Supply-Side Financial Incentives in Ride-Hailing Networks with Spatial Demand Imbalance and Strategic Drivers. 2025.

BibTeX Click to copy

@article{philipp2025a,
  title = {Effectiveness of supply-side financial incentives in ride-hailing networks with spatial demand imbalance and strategic drivers},
  year = {2025},
  author = {Afèche, Philipp and Cire, Andre and Mohring, Uta}
}

When matching riders with self-interested drivers in a spatial network, ride-hailing platforms face two challenges: (i) there are spatial demand imbalances that require some repositioning of drivers to serve the total rider demand, and (ii) the self-interested drivers strategically decide whether to join the network, and if so, whether to wait for the next rider or reposition when not serving riders. We study the effects of supply-side financial incentives on drivers’ decentralized repositioning decisions and the resulting repositioning equilibrium and evaluate their effectiveness in achieving the equilibrium under centralized repositioning.