Revenue vs. welfare: a comprehensive analysis of strategic trade-offs in online food delivery systems

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.