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Order Acquisition Under Competitive Pressure: A Rapidly Adaptive Reinforcement Learning Approach for Ride-Hailing Subsidy Strategies

Created by
  • Haebom

Author

Fangzhou Shi, Xiaopeng Ke, Xinye Xiong, Kexin Meng, Chang Men, Zhengdan Zhu

Outline

This paper addresses the problem of coupon strategy optimization of service providers in ride-sharing platforms. Since passengers prefer service providers offering lower fares, service providers have a strong incentive to use coupon strategies to secure orders. Accordingly, this paper proposes FCA-RL, a novel reinforcement learning-based subsidy strategy framework that rapidly adapts to competitors’ price changes and optimizes order volume under budget constraints. FCA-RL integrates two key techniques: Fast Competition Adaptation (FCA) to accelerate competition adaptation and Reinforced Lagrangian Adjustment (RLA) to optimize coupon decisions while respecting budget constraints. In addition, we introduce RideGym, a dedicated simulation environment for evaluating and benchmarking various pricing strategies. Experimental results show that FCA-RL outperforms existing methods in various market situations.

Takeaways, Limitations

Takeaways:
A new approach to optimizing coupon strategies for ride-sharing service providers
Achieve rapid adaptation to competitor price changes while simultaneously complying with budget constraints
Providing a RideGym environment for designing and evaluating effective coupon strategies in a variety of market situations
Demonstrating the Effectiveness of an Efficient Subsidy Optimization Strategy Based on Reinforcement Learning
Limitations:
Possible differences between the RideGym simulation environment and the real world
Potential for unexpected variables to occur when applied to an actual ride-sharing platform
Further research is needed on the long-term performance and stability of FCA-RL
Further analysis is needed on different types of coupon strategies and considerations.
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