McMaster University Menu Search
Faculty of Science School of Computational Science and Engineering
Faculty of Science

School of Computational Science and Engineering

Price, wage and fixed commission in on-demand matching

On-demand platforms, such as the ride-hailing service Uber, often use crowdsourced supply to satisfy customer demand. In this paper, we study a two-sided on-demand matching platform's problem of determining wage (for crowdsourced suppliers) and price (for customers) in various market conditions. We investigate the performance of the fixed-commission structure, under which the wage is a fixed fraction of the price, regardless of the market conditions. We show that under mild conditions, the fixed-commission structure achieves at least 75% of the optimal revenue for the platform.
McMaster University - Faculty of Science

Mailing Address

Department of Mathematics & Statistics
School of Computational Science and Engineering

Hamilton Hall, Room 218
1280 Main Street West
Hamilton, Ontario, Canada
L8S 4K1

Contact Information

Office Hours:
8:30 a.m. - 12:00 p.m.
1:00 p.m. - 4:30 p.m.
Telephone Inquiries:
+1 (905) 525-9140 ext.24116
Graduate Email Inquiries:
graduate@math.mcmaster.ca

McMaster University - Faculty of Science

Mailing Address

Department of Mathematics & Statistics
School of Computational Science and Engineering

Hamilton Hall, Room 218
1280 Main Street West
Hamilton, Ontario, Canada
L8S 4K1

Contact Information

Office Hours:
8:30 a.m. - 12:00 p.m.
1:00 p.m. - 4:30 p.m.
Telephone Inquiries:
+1 (905) 525-9140 ext.24116
Graduate Email Inquiries:
graduate@math.mcmaster.ca

aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa