Slugging: Casual Carpooling for Urban Transit

Shiliang Cui (), Kaili Li (), Luyi Yang () and Jinting Wang ()
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Shiliang Cui: McDonough School of Business, Georgetown University, Washington, District of Columbia 20057
Kaili Li: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Luyi Yang: Haas School of Business, University of California, Berkeley, Berkeley, California 94720
Jinting Wang: School of Management Science and Engineering, Central University of Finance and Economics, Beijing 100081, China

Manufacturing & Service Operations Management, 2022, vol. 24, issue 5, 2516-2534

Abstract: Problem definition : “Slugging,” or casual carpooling, refers to the commuting practice of drivers picking up passengers at designated locations and offering them a free ride in order to qualify for high-occupancy vehicle (HOV) lanes. Academic/practical relevance : It is estimated that tens of thousands of daily commuters rely on slugging to go to work in major U.S. cities. As drivers save commute time and passengers ride for free, slugging can be a promising Smart Mobility solution. However, little is known about the welfare, policy, and environmental implications of slugging. Methodology : We develop a stylized model that captures the essence of slugging. We characterize commuters’ equilibrium behavior in the model. Results : We find that slugging indeed makes commuters better off. However, the widely observed free-ride tradition is socially suboptimal. As compared with the social optimum, commuters always underslug in the free-slugging equilibrium when highway travel time is insensitive to slugging activities but may overslug otherwise. The socially optimal outcome can be achieved by allowing pecuniary exchanges between drivers and passengers. Interestingly, passengers may be better off if they pay for a ride than if they do not under free slugging. We also find that although policy initiatives to expand highway capacity or improve public transportation always increase social welfare in the absence of slugging, they may reduce social welfare in areas where free slugging is a major commuting choice. Nevertheless, these unintended consequences would be mitigated by the introduction of pecuniary exchanges. Finally, contrary to conventional wisdom, slugging as a form of carpooling can result in more cars on the road and thus, more carbon emissions. Managerial implications : Our results call upon the slugging community to rethink the free-ride practice. We also caution that slugging benefits commuters possibly to the detriment of the environment.

Keywords: shared mobility; HOV; carpool; welfare; equilibrium; social optimum; emissions (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormsom:v:24:y:2022:i:5:p:2516-2534

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