2018
DOI: 10.3386/w25015
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Do Digital Platforms Reduce Moral Hazard? The Case of Uber and Taxis

Abstract: Workshop for their valuable comments and suggestions. The MIT Initiative on the Digital Economy provided generous research support, and Uber provided essential data. Dowlatabadi is a current employee at Uber. The views expressed here are those of the authors and do not necessarily reflect those of Uber Technologies, Inc or the National Bureau of Economic Research. All errors are ours. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the… Show more

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Cited by 29 publications
(15 citation statements)
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“…Verification costs are linked to the ability to build on the experience of previous buyers and sellers to overcome asymmetric information about quality and trustworthiness. Examples are online rating systems and user reviews of different products [29,48,56,57]. The purpose is to build trust and lower costs associated with online purchasing.…”
Section: Fig 1 Goes In Herementioning
confidence: 99%
“…Verification costs are linked to the ability to build on the experience of previous buyers and sellers to overcome asymmetric information about quality and trustworthiness. Examples are online rating systems and user reviews of different products [29,48,56,57]. The purpose is to build trust and lower costs associated with online purchasing.…”
Section: Fig 1 Goes In Herementioning
confidence: 99%
“…A number of papers use incredibly rich and detailed data from ride-sharing firms to study other economic issues. For example, Cook et al (2018) use ridelevel data from a ride-sharing platform to study the determinants of gender earnings gap and Liu et al (2018) compare taxi and ride-sharing ride-level data to study the extent to which digital monitoring via the ride-sharing platform reduces moral hazard on the part of drivers.…”
Section: Personal Mobilitymentioning
confidence: 99%
“…Balafoutas et al (2013) documents an average detour length of 10% (1.3 km out of 12.7 km average ride) in the Athens taxi rides, which is slightly higher than the 5.6% average detour in my New York City setting. Concurrent work by Liu et al (forthcoming) study how passenger characteristics affect driver cheating using the NYC airport setting to show drivers cheat non-local passengers, while Liu et al (2018) find that ride-sharing monitoring technologies for passengers may mitigate driver cheating. This paper contributes to this literature by studying driver characteristics rather than passenger characteristics in determining cheating.…”
Section: Motivated By This Finding Imentioning
confidence: 99%