Market Mechanism Design for Profitable On-Demand Transport Services

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21230%2F16%3A00307366" target="_blank" >RIV/68407700:21230/16:00307366 - isvavai.cz</a>
Result on the web
<a href="http://www.sciencedirect.com/science/article/pii/S0191261516302302" target="_blank" >http://www.sciencedirect.com/science/article/pii/S0191261516302302</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.trb.2016.04.020" target="_blank" >10.1016/j.trb.2016.04.020</a>

Result language
angličtina
Original language name
Market Mechanism Design for Profitable On-Demand Transport Services
Original language description
On-demand transport services in the form of dial-a-ride and taxis are crucial parts of the transport infrastructure in all major cities. However, not all on-demand transport services are equal: not-for-profit dial-a-ride services with coordinated drivers significantly differ from profit-motivated taxi services with uncoordinated drivers. In fact, there are two key threads of work on efficient scheduling, routing, and pricing for passengers: dial-a-ride services; and taxi services. Unfortunately, there has been only limited development of algorithms for joint optimization of scheduling, routing, and pricing; largely due to the widespread assumption of fixed pricing. In this paper, we introduce another thread: profit motivated on-demand transport services with coordinated drivers. To maximize provider profits and the efficiency of the service, we propose a new market mechanism for this new thread of on-demand transport services, where passengers negotiate with the service provider. In contrast to previous work, our mechanism jointly optimizes scheduling, routing, and pricing. Ultimately, we demonstrate that our approach can lead to higher profits and reduced passenger prices, compared with standard fixed price approaches, while also improving efficiency.
Czech name
—
Czech description
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Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
JC - Computer hardware and software
OECD FORD branch
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Project
<a href="/en/project/EE2.3.30.0034" target="_blank" >EE2.3.30.0034: Support of inter-sectoral mobility and quality enhancement of research teams at Czech Technical University in Prague</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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