Change in Online Taxi Drivers’ Labor Supply: Learning or Price Effect? Evidence from Tapsi.
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Abstract
In this paper, a search model that accounts for online taxi drivers’ belief about goodness of ride prices in their ride acceptance behavior has been developed. The properties of a dataset form Tapsi, an Iranian ride-hailing company, is discussed. Using this dataset, the probability of ride acceptance for an average driver during different times of a working shift will be estimated. Furthermore, the dataset allows us to decompose the effect of an exogenous price shock on drivers’ ride acceptance patterns into two components: price effect and experience effect. In future steps of this research, the extent that each component determines short-term labor supply decision of drivers will be quantitatively measured using a regression discontinuity design.
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