Olga A. Markova, Anna Y. Stavniychuk, Karina A. Ionkina Resource Allocation Based on Dynamic Pricing: What is its source of power?

DOI: 10.38050/2078-3809-2024-17-1-79-97

Abstract

The article addresses the issues of dynamic pricing in taxi and courier delivery markets, where search frictions and matching failures play a significant role, leading to increased costs and reduced efficiency in resource allocation. The study demonstrates how the use of matching technologies and dynamic pricing helps reduce costs and enhance resource allocation efficiency amid changing demand and supply. A taxi service market model is constructed to analyze the impact of price surge multipliers on eliminating matching failures. The analysis showed that dynamic pricing reduces the probability of matching failures, enabling market equilibrium, especially during periods of high demand. This improves consumer and producer welfare.

Keywords: dynamic pricing, search frictions, matching failure, taxi, courier delivery, platform, labor market.

JEL: D40, L91, R41.

For citation: Markova, O.A., Stavniychuk, A. Y., Ionkina, K.A. (2025) Resource Allocation Based on Dynamic Pricing: What is its source of power? Scientific Research of Faculty of Economics. Electronic Journal, vol. 17, no. 1, pp. 79-97. DOI: 10.38050/2078-3809-2025-17-1-79-97

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