Revenue vs. welfare: a comprehensive analysis of strategic trade-offs in online food delivery systems
Year: 2025
Type: conference-paper
Abstract: This paper examines the critical trade-off between short-term revenue (GMV) and long-term social welfare in online food delivery platforms. We develop dual modeling frameworks: a static equilibrium model analyzing immediate platform performance, and a dynamic model incorporating key state variables like platform reputation and participant retention. Using dynamic programming, we derive optimal strategies that balance these competing objectives. Multi-agent experiments demonstrate that GMV-focused strategies generate initial gains but compromise long-term stability, while welfare-oriented approaches yield sustainable outcomes. Our results provide actionable insights for platform operators navigating growth-sustainability tensions.
Source: IET conference proceedings.
Authors: Yukun Zhang, Qi Dong
Institutions: Chinese University of Hong Kong, Fudan University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4414854919
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