  A system manager makes dynamic pricing and dispatch control decisions in a
queueing network model motivated by ride-hailing applications. A novel feature
of the model is that it incorporates travel times. Unfortunately, this renders
the exact analysis of the problem intractable. Therefore, we study this problem
in the heavy traffic regime. Under the assumptions of complete resource pooling
and common travel distribution, we solve the problem in closed form by
analyzing the corresponding Bellman equation. Using this solution, we propose a
policy for the queueing system and illustrate its effectiveness in a simulation
study.
