Evolutionary Dynamics of Gig Economy Labor Strategies under Technology, Policy and Market Influence

Kevin Hu; Feng Fu

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arXiv · 2103.13234

Evolutionary Dynamics of Gig Economy Labor Strategies under Technology, Policy and Market Influence

Kevin Hu·Feng Fu

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Abstract

The emergence of the modern gig economy introduces a new set of employment considerations for firms and laborers that include various trade-offs. With a game-theoretical approach, we examine the influences of technology, policy and markets on firm and worker preferences for gig labor. Theoretically, we present a new extension to the replicator equation and model oscillating dynamics in two-player asymmetric bi-matrix games with time-evolving environments, introducing concepts of the attractor arc, trapping zone and escape. We demonstrate how changing market conditions result in distinct evolutionary patterns for gig-labor preferences across high and low skill work-forces, which we explain through their differing sensitivities to market-driven consumer demand and financial incentives among other considerations. Informing tensions regarding the future of this new employment category, we present a novel payoff framework to analyze the role of technology on the growth of the gig economy. Finally, we explore regulatory implications within the gig economy, demonstrating how intervals of lenient and strict policy alter firm and worker sensitivities between gig and employee labor strategies.

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Kevin Hu, Feng Fu. 2021-03-24. Evolutionary Dynamics of Gig Economy Labor Strategies under Technology, Policy and Market Influence. https://arxiv.org/abs/2103.13234

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