John Hu L&S Math & Physical Sciences
Algorithmic Pricing and Labor Supply in Ride-Hailing
My research examines how algorithmic pricing influences labor supply in gig economy platforms like Uber. When demand is high, Uber raises prices through “surge pricing” to attract more drivers. While economic theory predicts that higher pay should increase labor supply, it is unclear whether these price incentives actually bring more drivers onto the platform or simply shift existing drivers across locations. Using publicly available ride-hailing data from New York City, I will analyze how trip activity changes across neighborhoods and time periods with different demand conditions. By focusing on dense urban areas such as Midtown Manhattan, I aim to understand whether higher prices lead to greater overall ride supply or primarily redistribute drivers to high-demand areas. This project contributes to broader questions about how digital platforms shape work patterns and whether algorithmic management improves market efficiency.
Message To Sponsor
I am deeply grateful for your support of my research this summer. My project explores how algorithmic pricing shapes labor supply in gig economy platforms like Uber, a question that sits at the intersection of economics and technology. Your generosity makes it possible for me to pursue this work and develop meaningful research skills. Thank you for helping make this opportunity possible.