Mechanism design for first-mile ridesharing based on personalized requirements part II: Solution algorithm for large-scale problems

Zheyong Bian and Xiang Liu

Transportation Research Part B: Methodological, 2019, vol. 120, issue C, 172-192

Abstract: Ridesharing provides travelers with a low-cost and convenient first-mile mobility service. Our Part I paper designed a mechanism to incentivize more travelers to participate in the first-mile ridesharing service accounting for passengers’ personalized requirements on inconvenience attributes of ridesharing. In order to address the computational challenge of obtaining the mechanism for large-scale transportation networks, this paper develops a novel heuristic algorithm, called the Solution Pooling Approach (SPA) for efficiently solving large-scale mechanism design problems in the first-mile ridesharing context. This paper also extends the SPA to solve generalized mechanism design problems, analyzes specific circumstances under which the SPA can sustain the game-theoretic properties, including “individual rationality” and “incentive compatibility”, and identifies its limitations. For the particular application in first-mile ridesharing, the SPA maintains the properties of “individual rationality” and “incentive compatibility”. Numerical experimental results show that the SPA can address the complex first-mile ridesharing service mechanism design problem in a computationally viable and efficient manner.

Keywords: Ridesharing; First-mile; Personalized service; Mechanism design; Solution pooling approach (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0191261517308238
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:120:y:2019:i:c:p:172-192

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2018.12.014

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Catherine Liu ().