Dynamic Pricing of Ride-Hailing Platforms considering Service Quality and Supply Capacity under Demand Fluctuation

Table 1

Notations.

Index
	The situation in decreasing market demand
u	The situation in increasing market demand
b	The situation in stable market demand
t	Time, t  [0, T]
Parameters
a	The coefficient of demand fluctuation
α	The size of rider demand market at t = 0 or a = 0
β	The price sensitivity factor
γ	The service sensitivity factor
s	The wage sensitivity factor
r	The fixed commission rate, 0 < r < 1
η	The service cost parameter
q	Service quality
c	The unit opportunity cost
h	The unit booking delay cost
ε	Minimum participation cost per time unit of a driver
	The ceiling price
	The ride-hailing service price
	The commission (wage) for drivers
	The unit cost function
	The initial demand of the market at time t
	The demand rate function
	The supply rate function
	The excess supply capacity of the platform
	The quantity of delayed bookings of the platform
	The total transaction volume of the platform
	The total profit of the platform