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Alice Lu

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Research Papers

Surge Pricing Moves Uber’s Driver-Partners

A. Lu, P. I. Frazier, O. Kislev
We study the impact of dynamic pricing (so-called "surge pricing") on relocation decisions by Uber's driver-partners and the corresponding revenue they collected. Using a natural experiment arising from an outage in the system that produces the surge pricing heatmap for a portion of Uber's driver-partners over 10 major cities, and a difference-in-differences approach, we study the short-run effect that visibility of the surge heatmap has on 1) drivers' decisions to relocate to areas with higher or lower prices and 2) drivers' revenue. [...] [PDF]
ACM Conference on Economics and Computation (ACM EC), 2018

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