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Face/Off: The adverse effects of increased competition
Quantitative Marketing and Economics ( IF 1.480 ) Pub Date : 2023-06-02 , DOI: 10.1007/s11129-023-09262-z
Iman Ahmadi

Increased competition can result in market efficiency. However, alternatively, it may provoke unethical behavior by sellers attempting to avoid losses—a risk that may be greater in credence goods markets, where consumers find it difficult to determine the value of goods or services received. The New York City (NYC) taxi market allows us to investigate how increased competition due to the launch of green-colored taxis (to serve only certain parts of NYC) may lead to fraudulent behavior by drivers of the established yellow taxis. An empirical study of more than 17 million matched yellow taxi trips revealed that fraudulent behavior was most prevalent on routes in which drivers faced increased competition for both pickups and post-drop-off pickups. However, after the launch of green taxis, there was no significant change in the trip distances of yellow taxis for rides subject to a flat-rate fare or for trips to/from office buildings where passengers were more familiar with optimal routes.



中文翻译:

Face/Off:竞争加剧的不利影响

竞争的加剧可以提高市场效率。然而,另一方面,它可能会引发试图避免损失的卖家的不道德行为——这种风险在信用商品市场中可能更大,因为消费者发现很难确定所收到商品或服务的价值。纽约市 (NYC) 出租车市场使我们能够调查由于推出绿色出租车(仅服务纽约市的某些部分)而导致的竞争加剧可能如何导致已建立的黄色出租车司机的欺诈行为。对超过 1700 万辆匹配的黄色出租车行程进行的实证研究表明,欺诈行为在司机面临日益激烈的接客和下客接客竞争的路线上最为普遍。然而,绿色出租车推出后,

更新日期:2023-06-02
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