Cost-Sharing Mechanisms for Ride-Sharing
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2020-04-01
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Edition:Final Report (February 2019 to March 2020)
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Abstract:In this research project, we seek to provide the emerging ride-sharing industry a method to determine how to allocate the cost such that it could potentially increase the incentive to use this environmentally friendly type of service. We first identify the desirable properties that a good cost-sharing mechanism shall have. Then, we develop a general framework which can be applied to develop specific mechanisms. Next, we propose specific mechanisms for the static scenario where all the information for the passengers is known in advance. We analyze their advantages and disadvantages so that transportation planners can select according to their different needs. In addition, we incorporate the value of time and provide another mechanism for this situation. Finally, we move to the dynamic scenario where the ride-sharing service is operated under uncertainties, and a specific mechanism is proposed. In both scenarios, we design and execute simulation experiments to systematically investigate the mechanisms’ performances.
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