Worker Utility as Hysteresis: A Preisach Model of Transaction Acceptance in Gig Labour Markets
arXiv:2606.04916v1 Announce Type: new Abstract: Worker utility is not observed -- only its consequence is. Each gig transaction produces a single bit: accepted or rejected. We argue this structure points directly to the Preisach hysteresis model as the natural representation of latent worker preferences. The Preisach operator models aggregate output as an integral over a population of binary threshold elements -- precisely the structure that emerges when heterogeneous workers each carry a private acceptance wage. We estimate two latent utility surfaces: acceptance utility U_1(X) and rejection
The proliferation of gig labour markets and the increasing sophistication of AI and economic modelling techniques are converging to allow for more nuanced understandings of worker behaviour.
Understanding latent worker preferences in gig economies can inform better platform design, pricing algorithms, and policy interventions, impacting the efficiency and fairness of these markets.
This research provides a more robust, empirically grounded model for predicting worker behaviour and transaction acceptance, moving beyond simplistic assumptions about utility.
- · Gig platforms using advanced AI for dispatching
- · Econometric modelling researchers
- · Workers benefiting from optimized wage structures
- · Gig platforms relying on basic statistical models
- · Economists using less sophisticated behavioural models
Gig platforms can develop algorithms that better predict worker supply and optimize pricing for tasks.
Improved predictive models could lead to more stable and efficient gig markets, potentially raising overall worker satisfaction or platform profitability.
Deeper understanding of worker utility could influence regulatory approaches to gig economy labour, prompting new policy frameworks for worker protections or compensation.
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Read at arXiv cs.LG