Food delivery optimization

Paper on Transportation Science (or see the working version here) Insights here: https://www.informs.org/About-INFORMS/News-Room/Press-Releases/New-Research-Says-Changes-in-Driver-Shifts-and-Pick-up-Choices-for-Food-Delivery-Services-Can-Boost-Profits “By introducing a minimum guaranteed hourly pay, platforms can gain more reliability among drivers and the benefits seem to outweigh the minimal cost increase,” said Savelsbergh. “A guaranteed pay rate of $15 an hour is 1.5 times the payment for a delivery … Continue reading Food delivery optimization

The expectation of the maximum of RVs is greater or equal to the maximum of the expectations

For any sequence of RVs X1,...,Xn the following holds: E[max{X1, ..., Xn}] >= max{E[X1], ..., E[Xn]}    (*) Proof. We have that max{X1, ..., Xn} >= Xi for all i. Thus, this holds in expectation as well, i.e. E[max{X1, ..., Xn}] >= E[Xi] for all i. Since this holds for all i, it holds for … Continue reading The expectation of the maximum of RVs is greater or equal to the maximum of the expectations

Research tournaments are Tullock contests and hence WTA is optimal

A classic paper of "research tournaments" by Fullerton and McAfee (1999) assumes a single prize (by design). Hoppe-Wewetzer and Wagener (2019) show that a Fullerton–McAfee "research tournament" with multiple prizes is strategically equivalent to a (nested) multi-prize Tullock contest. Given that it is known that Tullock contests are strategically equivalent to "effort+noise" contests with Gumbel … Continue reading Research tournaments are Tullock contests and hence WTA is optimal