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He is particularly interested in the design of optimal pricing policies and contracts that can be used in digital marketplaces such as ride-hailing platforms. His research on surge pricing (forthcoming in Management Science) led him and his co-authors to propose a two-dimensional framework in which a platform selects prices for different locations, and drivers respond by choosing where to relocate in equilibrium based on prices, travel costs and driver congestion levels. “The study analyzes the short-term pricing problem faced by a ride-hailing platform,” says Castro. “The general methodology we developed may be leveraged to compute parametric global solutions to the platform’s problem. But the framework and ideas could be leveraged in settings beyond ride-hailing to study problems in which agents have different types characterized by high-dimensional vectors.”
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OPERATIONS RESEARCHno. 1 (2024): 355-372
Francisco Castro, Scott Rodilitz
SSRN Electronic Journal (2024)
arXiv (Cornell University) (2023)
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CoRR (2023)
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SSRN Electronic Journal (2022)
Columbia Business School Research Paper Seriesno. 3 (2021): 1350-1367
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