Engineering Commons^™

Coordinating Supply And Demand On An On-Demand Service Platform With Impatient Customers, Jiaru Bai, Kut C. So, Christopher S. Tang, Xiqun Chen, Hai Wang

Research Collection School Of Computing and Information Systems

We consider an on-demand service platform using earning sensitive independent providers with heterogeneous reservation price (for work participation) to serve its time and price sensitive customers with heterogeneous valuation of the service. As such, both the supply and demand are "endogenously'' dependent on the price the platform charges its customers and the wage the platform pays its independent providers. We present an analytical model with endogenous supply (number of participating agents) and endogenous demand (customer request rate) to study this on-demand service platform. To coordinate endogenous demand with endogenous supply, we include the steady-state waiting time performance based on a …