An on-demand service platform with self-scheduling capacity: Uniform versus multiplier-based pricing

On-demand service platforms use multiplier-based pricing to provide services via self-scheduling participants. In a scheme, consumers pay lower prices during non-peak periods and higher equal the period price multiplied by surge multiplier peak periods. However, reasons underlying when it should be used remain unclear. this paper, we examine effects of two schemes—uniform pricing—on platform profits, participant payoff, consumer surplus formulating game-based models, investigate conditions feasible region for pricing. The results show that in scheme is than uniform price, which line with reality. When number potential participants larger, model generates more profits if compensation ratios models are or ratio lower. Participants better off joining uses given one following conditions: commission models. Consumers proportion periods, sensitivity change, higher.