IDEAS home Printed from https://ideas.repec.org/a/bla/popmgt/v32y2023i11p3665-3682.html
   My bibliography  Save this article

The role of data‐based intelligence and experience on time efficiency of taxi drivers: An empirical investigation using large‐scale sensor data

Author

Listed:
  • Yingda Lu
  • Youwei Wang
  • Yuxin Chen
  • Yun Xiong

Abstract

In this paper, we employ large‐scale sensor data to examine the impact of data‐based intelligence and work‐related experience on the time efficiency of individual taxi drivers, measured by their propensity of choosing the fastest routes. The identification strategy is built on (1) a unique exogenous policy shock‐banning taxi‐hailing app with an embedded GPS system, and (2) a measure of nonrecurring congestion avoidance, enabled by the real‐time sensor data, which serves as a proxy for GPS usage. Our empirical model provides evidence that data‐based intelligence improves taxi drivers’ routing decisions by close to 3% as measured by trip speed. Our results further demonstrate that inexperienced drivers have a higher chance of choosing the fastest route, as they are more likely to rely on the real‐time traffic information from GPS technology than experienced drivers. The general implications of our findings on the adoption and utilization of data‐based performance‐enhancing technology are discussed in closing.

Suggested Citation

  • Yingda Lu & Youwei Wang & Yuxin Chen & Yun Xiong, 2023. "The role of data‐based intelligence and experience on time efficiency of taxi drivers: An empirical investigation using large‐scale sensor data," Production and Operations Management, Production and Operations Management Society, vol. 32(11), pages 3665-3682, November.
    • Handle: RePEc:bla:popmgt:v:32:y:2023:i:11:p:3665-3682
    DOI: 10.1111/poms.14056
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/poms.14056
    Download Restriction: no
    File URL: https://libkey.io/10.1111/poms.14056?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 407-441.
    2. Erel Avineri & Joseph Prashker, 2006. "The Impact of Travel Time Information on Travelers’ Learning under Uncertainty," Transportation, Springer, vol. 33(4), pages 393-408, July.
    3. Chiara Longoni & Andrea Bonezzi & Carey K Morewedge, 2019. "Resistance to Medical Artificial Intelligence," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 46(4), pages 629-650.
    4. Armin Granulo & Christoph Fuchs & Stefano Puntoni, 2019. "Psychological reactions to human versus robotic job replacement," Nature Human Behaviour, Nature, vol. 3(10), pages 1062-1069, October.
    5. Loukas Balafoutas & Adrian Beck & Rudolf Kerschbamer & Matthias Sutter, 2013. "What Drives Taxi Drivers? A Field Experiment on Fraud in a Market for Credence Goods," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(3), pages 876-891.
    6. Eran Ben-Elia & Ido Erev & Yoram Shiftan, 2008. "The combined effect of information and experience on drivers’ route-choice behavior," Transportation, Springer, vol. 35(2), pages 165-177, March.
    7. Meng Liu & Erik Brynjolfsson & Jason Dowlatabadi, 2021. "Do Digital Platforms Reduce Moral Hazard? The Case of Uber and Taxis," Management Science, INFORMS, vol. 67(8), pages 4665-4685, August.
    8. Catherine Hausman & David S. Rapson, 2018. "Regression Discontinuity in Time: Considerations for Empirical Applications," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 533-552, October.
    9. Michael L. Anderson, 2014. "Subways, Strikes, and Slowdowns: The Impacts of Public Transit on Traffic Congestion," American Economic Review, American Economic Association, vol. 104(9), pages 2763-2796, September.
    10. Gordon Burtch & Seth Carnahan & Brad N. Greenwood, 2018. "Can You Gig It? An Empirical Examination of the Gig Economy and Entrepreneurial Activity," Management Science, INFORMS, vol. 64(12), pages 5497-5520, December.
    11. Vivek Choudhary & Masha Shunko & Serguei Netessine & Seongjoon Koo, 2022. "Nudging Drivers to Safety: Evidence from a Field Experiment," Management Science, INFORMS, vol. 68(6), pages 4196-4214, June.
    12. Tom F. Tan & Bradley R. Staats, 2020. "Behavioral Drivers of Routing Decisions: Evidence from Restaurant Table Assignment," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1050-1070, April.
    13. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    14. Bradley R. Staats & Hengchen Dai & David Hofmann & Katherine L. Milkman, 2017. "Motivating Process Compliance Through Individual Electronic Monitoring: An Empirical Examination of Hand Hygiene in Healthcare," Management Science, INFORMS, vol. 63(5), pages 1563-1585, May.
    15. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    16. Henry S. Farber, 2005. "Is Tomorrow Another Day? The Labor Supply of New York City Cabdrivers," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 46-82, February.
    17. Kareem Haggag & Brian McManus & Giovanni Paci, 2017. "Learning by Driving: Productivity Improvements by New York City Taxi Drivers," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 70-95, January.
    18. Veronica Grembi & Tommaso Nannicini & Ugo Troiano, 2016. "Do Fiscal Rules Matter?," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 1-30, July.
    19. Qi Feng & J. George Shanthikumar, 2022. "Developing operations management data analytics," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4544-4557, December.
    20. Wood, Stacy L & Lynch, John G, Jr, 2002. "Prior Knowledge and Complacency in New Product Learning," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(3), pages 416-426, December.
    21. Berkeley J. Dietvorst & Joseph P. Simmons & Cade Massey, 2018. "Overcoming Algorithm Aversion: People Will Use Imperfect Algorithms If They Can (Even Slightly) Modify Them," Management Science, INFORMS, vol. 64(3), pages 1155-1170, March.
    22. Tsan‐Ming Choi & Stein W. Wallace & Yulan Wang, 2018. "Big Data Analytics in Operations Management," Production and Operations Management, Production and Operations Management Society, vol. 27(10), pages 1868-1883, October.
    23. Chris Groër & Bruce Golden & Edward Wasil, 2009. "The Consistent Vehicle Routing Problem," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 630-643, February.
    24. Mark A Burgman & Marissa McBride & Raquel Ashton & Andrew Speirs-Bridge & Louisa Flander & Bonnie Wintle & Fiona Fidler & Libby Rumpff & Charles Twardy, 2011. "Expert Status and Performance," PLOS ONE, Public Library of Science, vol. 6(7), pages 1-7, July.
    25. Stacy Wood & Kevin Schulman, 2019. "The Doctor-of-the-Future Is In: Patient Responses to Disruptive Health-Care Innovations," Journal of the Association for Consumer Research, University of Chicago Press, vol. 4(3), pages 231-243.
    26. Guillaume R. Fréchette & Alessandro Lizzeri & Tobias Salz, 2019. "Frictions in a Competitive, Regulated Market: Evidence from Taxis," American Economic Review, American Economic Association, vol. 109(8), pages 2954-2992, August.
    27. Alba, Joseph W & Hutchinson, J Wesley, 1987. "Dimensions of Consumer Expertise," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 411-454, March.
    28. Yingjie Zhang & Beibei Li & Ramayya Krishnan, 2020. "Learning Individual Behavior Using Sensor Data: The Case of Global Positioning System Traces and Taxi Drivers," Information Systems Research, INFORMS, vol. 31(4), pages 1301-1321, December.
    29. Imke Reimers & Benjamin R. Shiller, 2019. "The Impacts of Telematics on Competition and Consumer Behavior in Insurance," Journal of Law and Economics, University of Chicago Press, vol. 62(4), pages 613-632.
    30. Saravanan Kesavan & Tarun Kushwaha, 2020. "Field Experiment on the Profit Implications of Merchants’ Discretionary Power to Override Data-Driven Decision-Making Tools," Management Science, INFORMS, vol. 66(11), pages 5182-5190, November.
    31. Ting Liu & Estefania Vergara‐Cobos & Yiyi Zhou, 2019. "Pricing Schemes and Seller Fraud: Evidence from New York City Taxi Rides," Journal of Industrial Economics, Wiley Blackwell, vol. 67(1), pages 56-90, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mosquera, Roberto, 2024. "Stuck in traffic: Measuring congestion externalities with negative supply shocks," Regional Science and Urban Economics, Elsevier, vol. 108(C).
    2. Yingjie Zhang & Beibei Li & Ramayya Krishnan, 2020. "Learning Individual Behavior Using Sensor Data: The Case of Global Positioning System Traces and Taxi Drivers," Information Systems Research, INFORMS, vol. 31(4), pages 1301-1321, December.
    3. Tang, Johnny Jiahao, 2020. "Individual heterogeneity and cultural attitudes in credence goods provision," European Economic Review, Elsevier, vol. 126(C).
    4. Iman Ahmadi, 2023. "Face/Off: The adverse effects of increased competition," Quantitative Marketing and Economics (QME), Springer, vol. 21(2), pages 183-279, June.
    5. Yingjie Zhang & Beibei Li & Sean Qian, 2023. "Ridesharing and Digital Resilience for Urban Anomalies: Evidence from the New York City Taxi Market," Information Systems Research, INFORMS, vol. 34(4), pages 1775-1790, December.
    6. Yiyuan Ma & Ke Chen & Youzhi Xiao & Rong Fan, 2022. "Does Online Ride-Hailing Service Improve the Efficiency of Taxi Market? Evidence from Shanghai," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    7. Kenchington, David G. & Shohfi, Thomas D. & Smith, Jared D. & White, Roger M., 2022. "Do sin tax hikes spur cheating in interpersonal exchange?," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    8. Kim, Youngsoo, 2022. "Taxi driver’s learning curves: An empirical analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 1-13.
    9. Meng Liu & Erik Brynjolfsson & Jason Dowlatabadi, 2021. "Do Digital Platforms Reduce Moral Hazard? The Case of Uber and Taxis," Management Science, INFORMS, vol. 67(8), pages 4665-4685, August.
    10. Wang, Hai & Yang, Hai, 2019. "Ridesourcing systems: A framework and review," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 122-155.
    11. Berger, Thor & Chen, Chinchih & Frey, Carl Benedikt, 2018. "Drivers of disruption? Estimating the Uber effect," European Economic Review, Elsevier, vol. 110(C), pages 197-210.
    12. Weiqiang Tan & Jian Zhang, 2021. "Good Days, Bad Days: Stock Market Fluctuation and Taxi Tipping Decisions," Management Science, INFORMS, vol. 67(6), pages 3965-3984, June.
    13. Loukas Balafoutas & Rudolf Kerschbamer & Matthias Sutter, 2017. "Second‐Degree Moral Hazard In A Real‐World Credence Goods Market," Economic Journal, Royal Economic Society, vol. 127(599), pages 1-18, February.
    14. Pfeifer, Gregor & Stockburger, Mirjam, 2023. "The morning after: Prescription-free access to emergency contraceptive pills," Journal of Health Economics, Elsevier, vol. 91(C).
    15. Nicholas Buchholz & Laura Doval & Jakub Kastl & Filip Matějka & Tobias Salz, 2020. "Personalized Pricing and the Value of Time: Evidence from Auctioned Cab Rides," NBER Working Papers 27087, National Bureau of Economic Research, Inc.
    16. Lu Ling & Xinwu Qian & Satish V. Ukkusuri, 2023. "Impact of Transportation Network Companies on Labor Supply and Wages for Taxi Drivers," Papers 2307.13620, arXiv.org.
    17. Alessandro Saia, 2022. "Trouble Underground: Demand Shocks and the Labor Supply Behavior of New York City Taxi Drivers," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 1-27, March.
    18. Götte, Lorenz & Huffman, David B., 2006. "Incentives and the Allocation of Effort Over Time: The Joint Role of Affective and Cognitive Decision Making," IZA Discussion Papers 2400, Institute of Labor Economics (IZA).
    19. Jayita Chakraborty & Debapratim Pandit & Jianhong Xia & Felix Chan, 2024. "Modeling the decision of ridesourcing drivers to park and wait at trip ends: a comparison between Perth, Australia and Kolkata, India," Transportation, Springer, vol. 51(3), pages 1089-1124, June.
    20. Buchholz, Nicholas & Doval, Laura & Kastl, Jakub & Matejka, Filip & Salz, Tobias, 2020. "The Value of Time: Evidence From Auctioned Cab Rides," CEPR Discussion Papers 14666, C.E.P.R. Discussion Papers.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:popmgt:v:32:y:2023:i:11:p:3665-3682. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1937-5956 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.