Professor David Brown and co-authors developed a dynamic pricing model for spatially distributed demand-based services, such as ride sharing
Technology makes it easy for companies like Uber and Lyft to add for-hire cars to city streets. But these transportation network companies (TNCs) face a daunting challenge. Every minute of every day they must provide an optimal supply of vehicles and coordinate their whereabouts to maximize their revenue in an ever-changing environment.
[This article has been reproduced with permission from Duke University's Fuqua School of Business. This piece originally appeared on Duke Fuqua Insights]