IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v317y2024i3p718-736.html
   My bibliography  Save this article

Single-leader multi-follower games for the regulation of two-sided mobility-as-a-service markets

Author

Listed:
  • Xi, Haoning
  • Aussel, Didier
  • Liu, Wei
  • Waller, S.Travis.
  • Rey, David

Abstract

Mobility-as-a-Service (MaaS) is an emerging business model in transportation enabled through mobile internet technologies. A MaaS platform can be viewed as a two-sided market, where travelers and transportation service providers (TSPs) are two groups of interacting agents. We propose an optimization framework for the regulation of two-sided MaaS markets. We cast this problem as a single-leader multi-follower game (SLMFG) where the leader is the MaaS regulator and two groups of follower problems represent the travelers and the TSPs. The MaaS regulator aims to maximize its profits by optimizing service prices and resource allocation. In response, travelers (resp. TSPs) adjust their participation level in the MaaS platform to minimize their travel costs (resp. maximize their profits). We analyze network effects in the MaaS market and formulate SLMFGs without/with network effects leading to mixed-integer linear/quadratic bilevel programming problems. We propose single-level reformulations based on mathematical programming with equilibrium constraints (MPECs) and prove the equivalence between the solutions obtained using the MPECs and the original bilevel problems. Customized branch-and-bound algorithms based on strong duality reformulations are developed to solve these MPECs. Extensive numerical experiments conducted on large-scale instances generated from realistic mobility data highlight the performance of the proposed algorithms relative to a benchmarking approach, and provide meaningful managerial insights for the regulation of two-sided MaaS markets.

Suggested Citation

  • Xi, Haoning & Aussel, Didier & Liu, Wei & Waller, S.Travis. & Rey, David, 2024. "Single-leader multi-follower games for the regulation of two-sided mobility-as-a-service markets," European Journal of Operational Research, Elsevier, vol. 317(3), pages 718-736.
  • Handle: RePEc:eee:ejores:v:317:y:2024:i:3:p:718-736
    DOI: 10.1016/j.ejor.2022.06.041
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221722005161
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2022.06.041?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Rey & Hillel Bar-Gera & Vinayak V. Dixit & S. Travis Waller, 2019. "A Branch-and-Price Algorithm for the Bilevel Network Maintenance Scheduling Problem," Transportation Science, INFORMS, vol. 53(5), pages 1455-1478, September.
    2. Jiaru Bai & Kut C. So & Christopher S. Tang & Xiqun (Michael) Chen & Hai Wang, 2019. "Coordinating Supply and Demand on an On-Demand Service Platform with Impatient Customers," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 556-570, July.
    3. Wong, Yale Z. & Hensher, David A. & Mulley, Corinne, 2020. "Mobility as a service (MaaS): Charting a future context," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 5-19.
    4. James E. Falk & Richard M. Soland, 1969. "An Algorithm for Separable Nonconvex Programming Problems," Management Science, INFORMS, vol. 15(9), pages 550-569, May.
    5. Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-143, Summer.
    6. Didier Aussel & Anton Svensson, 2019. "Is Pessimistic Bilevel Programming a Special Case of a Mathematical Program with Complementarity Constraints?," Journal of Optimization Theory and Applications, Springer, vol. 181(2), pages 504-520, May.
    7. Didier Aussel & Anton Svensson, 2019. "Towards Tractable Constraint Qualifications for Parametric Optimisation Problems and Applications to Generalised Nash Games," Journal of Optimization Theory and Applications, Springer, vol. 182(1), pages 404-416, July.
    8. Yang, Hai & Qin, Xiaoran & Ke, Jintao & Ye, Jieping, 2020. "Optimizing matching time interval and matching radius in on-demand ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 84-105.
    9. Bian, Zheyong & Liu, Xiang, 2019. "Mechanism design for first-mile ridesharing based on personalized requirements part I: Theoretical analysis in generalized scenarios," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 147-171.
    10. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    11. Djavadian, Shadi & Chow, Joseph Y.J., 2017. "An agent-based day-to-day adjustment process for modeling ‘Mobility as a Service’ with a two-sided flexible transport market," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 36-57.
    12. Wang, Xiaolei & He, Fang & Yang, Hai & Oliver Gao, H., 2016. "Pricing strategies for a taxi-hailing platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 212-231.
    13. Didier Aussel & Anton Svensson, 2020. "A Short State of the Art on Multi-Leader-Follower Games," Springer Optimization and Its Applications, in: Stephan Dempe & Alain Zemkoho (ed.), Bilevel Optimization, chapter 0, pages 53-76, Springer.
    14. Ma, Tai-Yu & Rasulkhani, Saeid & Chow, Joseph Y.J. & Klein, Sylvain, 2019. "A dynamic ridesharing dispatch and idle vehicle repositioning strategy with integrated transit transfers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 417-442.
    15. Sinha, Ankur & Malo, Pekka & Deb, Kalyanmoy, 2017. "Evolutionary algorithm for bilevel optimization using approximations of the lower level optimal solution mapping," European Journal of Operational Research, Elsevier, vol. 257(2), pages 395-411.
    16. Zha, Liteng & Yin, Yafeng & Du, Yuchuan, 2018. "Surge pricing and labor supply in the ride-sourcing market," Transportation Research Part B: Methodological, Elsevier, vol. 117(PB), pages 708-722.
    17. Benoît Colson & Patrice Marcotte & Gilles Savard, 2007. "An overview of bilevel optimization," Annals of Operations Research, Springer, vol. 153(1), pages 235-256, September.
    18. M. Hosein Zare & Juan S. Borrero & Bo Zeng & Oleg A. Prokopyev, 2019. "A note on linearized reformulations for a class of bilevel linear integer problems," Annals of Operations Research, Springer, vol. 272(1), pages 99-117, January.
    19. Nourinejad, Mehdi & Ramezani, Mohsen, 2020. "Ride-Sourcing modeling and pricing in non-equilibrium two-sided markets," Transportation Research Part B: Methodological, Elsevier, vol. 132(C), pages 340-357.
    20. David A. Hensher & Haoning Xi, 2022. "Mobility as a service (MaaS): are effort and seamlessness the keys to MaaS uptake?," Transport Reviews, Taylor & Francis Journals, vol. 42(3), pages 269-272, May.
    21. Il-Horn Hann & Christian Terwiesch, 2003. "Measuring the Frictional Costs of Online Transactions: The Case of a Name-Your-Own-Price Channel," Management Science, INFORMS, vol. 49(11), pages 1563-1579, November.
    22. Lei, Chao & Jiang, Zhoutong & Ouyang, Yanfeng, 2020. "Path-based dynamic pricing for vehicle allocation in ridesharing systems with fully compliant drivers," Transportation Research Part B: Methodological, Elsevier, vol. 132(C), pages 60-75.
    23. Behdad Beheshti & Oleg A. Prokopyev & Eduardo L. Pasiliao, 2016. "Exact solution approaches for bilevel assignment problems," Computational Optimization and Applications, Springer, vol. 64(1), pages 215-242, May.
    24. Pirmin Fontaine & Stefan Minner, 2017. "A dynamic discrete network design problem for maintenance planning in traffic networks," Annals of Operations Research, Springer, vol. 253(2), pages 757-772, June.
    25. Luce Brotcorne & Martine Labbé & Patrice Marcotte & Gilles Savard, 2001. "A Bilevel Model for Toll Optimization on a Multicommodity Transportation Network," Transportation Science, INFORMS, vol. 35(4), pages 345-358, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel Villamar & Didier Aussel, 2024. "A bilevel optimization approach of energy transition in freight transport: SOS1 method and application to the Ecuadorian case," Computational Management Science, Springer, vol. 21(2), pages 1-30, December.

    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. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    2. Zhao, Meng & Li, Bin & Ren, Jiali & Hao, Zhihua, 2023. "Competition equilibrium of ride-sourcing platforms and optimal government subsidies considering customers’ green preference under peak carbon dioxide emissions," International Journal of Production Economics, Elsevier, vol. 255(C).
    3. Sun, Luoyi & Teunter, Ruud H. & Hua, Guowei & Wu, Tian, 2020. "Taxi-hailing platforms: Inform or Assign drivers?," Transportation Research Part B: Methodological, Elsevier, vol. 142(C), pages 197-212.
    4. Rong Fan & Xuegang & Ban, 2020. "Commuting Service Platform: Concept and Analysis," Papers 2001.03646, arXiv.org.
    5. Fan, Rong & Ban, Xuegang (Jeff), 2022. "Commuting service platform: Concept and analysis," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 18-51.
    6. Mo, Dong & Yu, Jingru & Chen, Xiqun Michael, 2020. "Modeling and managing heterogeneous ride-sourcing platforms with government subsidies on electric vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 447-472.
    7. Chen, Xiqun (Michael) & Zheng, Hongyu & Ke, Jintao & Yang, Hai, 2020. "Dynamic optimization strategies for on-demand ride services platform: Surge pricing, commission rate, and incentives," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 23-45.
    8. Li, Manzi & Jiang, Gege & Lo, Hong K., 2023. "Optimal cancellation penalty for competing ride-sourcing platforms under waiting time uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    9. Shi, Junxin & Li, Xiangyong & Aneja, Y.P. & Li, Xiaonan, 2023. "Ride-matching for the ride-hailing platform with heterogeneous drivers," Transport Policy, Elsevier, vol. 136(C), pages 169-192.
    10. Zhang, Kenan & Nie, Yu (Marco), 2021. "Inter-platform competition in a regulated ride-hail market with pooling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    11. Li, Manzi & Jiang, Gege & Lo, Hong K., 2022. "Pricing strategy of ride-sourcing services under travel time variability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    12. Xi, Haoning & Liu, Wei & Waller, S. Travis & Hensher, David A. & Kilby, Philip & Rey, David, 2023. "Incentive-compatible mechanisms for online resource allocation in Mobility-as-a-Service systems," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 119-147.
    13. Beojone, Caio Vitor & Geroliminis, Nikolas, 2023. "A dynamic multi-region MFD model for ride-sourcing with ridesplitting," Transportation Research Part B: Methodological, Elsevier, vol. 177(C).
    14. Li, Baicheng & Szeto, W.Y. & Luo, Qin, 2021. "A peak-period taxi scheme design problem: Formulation and policy implications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    15. Xu, Zhengtian & Yin, Yafeng & Chao, Xiuli & Zhu, Hongtu & Ye, Jieping, 2021. "A generalized fluid model of ride-hailing systems," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 587-605.
    16. Rajendran, Suchithra & Srinivas, Sharan, 2020. "Air taxi service for urban mobility: A critical review of recent developments, future challenges, and opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    17. Ke, Jintao & Li, Xinwei & Yang, Hai & Yin, Yafeng, 2021. "Pareto-efficient solutions and regulations of congested ride-sourcing markets with heterogeneous demand and supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    18. Oksana Loginova & X. Henry Wang & Qihong Liu, 2022. "The impact of multi-homing in a ride-sharing market," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(1), pages 239-254, August.
    19. Chen, Junlin & Xiong, Jinghong & Chen, Guobao & Liu, Xin & Yan, Peng & Jiang, Hai, 2024. "Optimal instant discounts of multiple ride options at a ride-hailing aggregator," European Journal of Operational Research, Elsevier, vol. 314(2), pages 718-734.
    20. Tian, Lijun & Jiang, Xiaolan & Wu, Wenxiang & Huang, Haijun, 2024. "Becoming a freelancer or contractor? Drivers’ contractual mode and schedule decisions in a dual sourcing market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).

    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:eee:ejores:v:317:y:2024:i:3:p:718-736. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    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.