Economics at your fingertips  

Cost-sharing mechanism design for ride-sharing

Shichun Hu, Maged M. Dessouky, Nelson A. Uhan and Phebe Vayanos

Transportation Research Part B: Methodological, 2021, vol. 150, issue C, 410-434

Abstract: In this paper, we focus on the cost-sharing problem for ride-sharing: determining how to allocate the total ride cost between the driver and the passengers. In particular, we focus on the scenario where drivers are also commuters with the goal of cost recovery. We identify the properties that a desirable cost-sharing mechanism should have and develop a general framework that can be used to create specific cost-sharing mechanisms. We propose specific mechanisms and analyze their relative advantages and disadvantages so that service providers can select a mechanism according to their different needs. In addition, we incorporate the value of time by allowing passengers to have inconvenience costs due to extra travel time caused by detours for picking up the passengers, and provide discount methods to compensate for these costs. We evaluate our approach using real traffic data from the downtown Los Angeles area. Our results show that each proposed mechanism has its unique advantages and that the discount methods can successfully reduce the number of no-passenger vehicles for a large ride-sharing system.

Keywords: Cost-sharing; Ride-sharing; Mechanism design (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
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:

Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2021.06.018

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 ().

Page updated 2021-10-16
Handle: RePEc:eee:transb:v:150:y:2021:i:c:p:410-434