讲座题目：A Balancing Act of Regulating On-demand Ride Services
主讲嘉宾：Jiayi Joey Yu
Dr. Jiayi Joey Yu is now doing a postdoc at Department of IEOR, University of California, Berkeley. Her research interests have been focusing on practical operations management problems arising from innovative business models and socially responsible operations. Dr. Yu received her both Ph.D. and Bachelor degree from Department of Industrial Engineering, Tsinghua University. She has published papers in top journals like Management Science, Manufacturing & Service Operations Management, Decision Sciences, etc. During her Ph.D. study, she was the finalist of INFORMS IBM Service Section Best Student Paper Award and received honorable mention in POMS-HK Best Student Paper Award.
Regulating on-demand ride-hailing services (e.g., Uber and DiDi) requires a balance of multiple competing objectives: encouraging innovative business models (e.g., DiDi), sustaining traditional industries (e.g., taxi), creating new jobs, and reducing traffic congestion. This study is motivated by a regulatory policy implemented by the Chinese government in 2017 and a similar policy approved by the New York City Council in 2018 that regulate the “maximum” number of registered Uber/DiDi drivers. We examine the impact of these policies on the welfare of different stakeholders (i.e., consumers, taxi drivers, on-demand ride service company, and independent drivers). By analyzing a two-period dynamic game that involves these stakeholders, we find that without government intervention, the on-demand ride service platform can drive the traditional taxi industry out of the market under certain conditions. Relative to no regulations and a complete ban policy, a carefully designed regulatory policy can strike a better balance of multiple competing objectives. Finally, if a government can reform the taxi industry by adjusting the taxi fare, then lowering the taxi fare instead of imposing a strict policy toward on-demand ride services can improve the total social welfare.