Abstract
The development of electric vehicles incurs the consumer's variety seeking in the sharing economy. In addition to being passengers on the sharing platform, customers can rent electric vehicles from the rental company as ride-hailing drivers, rather than purchasing from the manufacturing firm. In this article, we set up a game-theoretic model to study the customer's variety-seeking behavior in the new frenemy partnership and solve the equilibrium pricing strategy and quality decision for the rental company and the sharing platform. The numerical experiments show that the rental company's price is less influenced by the valuation heterogeneity, but the sharing platform's price is the opposite. Given some real-world examples of product ownership and product usage in sustainable transportation, we discuss the consumer's variety seeking and the company/platform's pricing strategy from both the passenger and driver sides.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
