Abstract
ABSTRACTThis paper looks at the economics of ridesourcing (or app-based ride-hailing) with a particular focus on the US. It brings together the rather dispersed literature on the subject focusing on the economic characteristics of the underlying industry and sets this within the broader context of transportation economics. In particular, it sorts out the realities of ridesourcing from some of myths that were perpetrated in its early days and, in many cases, still persist. It considers some of the empirical evidence that has emerged regarding the key parameters that determine the way Uber and the like operate, and the welfare implications of this, together with comments on some of the regulatory reactions to the new transportation platform. It concludes by suggesting some ways in which recent developments in economic could move forward our understanding of the industry as technologies and markets change.
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