Tolga Dizdarer

Tolga Dizdarer
  • Doctoral Candidate

Contact Information

  • office Address:

    533.1 Jon M. Huntsman Hall
    3730 Walnut Street
    Philadelphia, PA 19104

Research

  • Gérard Cachon, Tolga Dizdarer, Gerry Tsoukalas (Working), Pricing Control and Regulation on Online Service Platforms.

    Abstract: Online service platforms enable customers to connect with a large population of independent servers and operate successfully in many sectors, including transportation, lodging, and delivery, among others. We study how prices are chosen and fees are collected on the platform. The platform could assert full control over pricing despite being unaware of the servers’ costs (e.g., ride sharing). Or the platform could allow unfettered price competition among the servers (e.g., lodging). This choice influences both the amount of supply available and the overall attractiveness of the platform to consumers. When the platform collects revenue via a commission or a per-unit fee, neither price delegation strategy dominates the other. However, the platform’s best payment structure is simple and easy to implement - it is merely the combination of a commission and a per-unit fee (which can be negative, as in a subsidy). Furthermore, this combination enables the delegation of price control to the servers, which may assist in the classification of the servers as contractors rather than employees. A similar approach can be used to maximize profits by fully disintermediated platforms (i.e., no central owner), such as those enabled by blockchain technology.