IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v129y2019icp273-304.html
   My bibliography  Save this article

A general equilibrium model for transportation systems with e-hailing services and flow congestion

Author

Listed:
  • (Jeff) Ban, Xuegang
  • Dessouky, Maged
  • Pang, Jong-Shi
  • Fan, Rong

Abstract

Passengers are increasingly using e-hailing as a means to request transportation services. Adoption of these types of services has the potential to impact the travel behavior of individuals as well as increase congestion and vehicle miles driven since extra deadhead miles must be added to the trip (e.g., the extra miles from the driver location to the pick-up location of the customer). The objective of this paper is to develop a basic mathematical model to help transportation planners understand the relationship between the wide-scale use of e-hailing transportation services and deadhead miles and resulting impact on congestion. Specifically, this paper develops a general economic equilibrium model at the macroscopic level to describe the equilibrium state of a transportation system composed of solo drivers and the e-hailing service providers (e-HSPs). The equilibrium model consists of three interacting sub-models: e-HSP choice, customer choice, and network congestion; the model is completed with a “market clearance” condition describing the waiting costs in the customer’s optimization problem in terms of the e-HSPs’ decisions, thereby connecting the supply and demand sides of the equilibrium. We show the existence of an equilibrium of a certain kind under some mild assumptions. In numerical experiments, we illustrate the sensitivity on the usage of these modes to various parameters representing cost, value of time, safety, and comfort level, as well as the resulting relationship between usage of these services and vehicle miles.

Suggested Citation

  • (Jeff) Ban, Xuegang & Dessouky, Maged & Pang, Jong-Shi & Fan, Rong, 2019. "A general equilibrium model for transportation systems with e-hailing services and flow congestion," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 273-304.
    • Handle: RePEc:eee:transb:v:129:y:2019:i:c:p:273-304
    DOI: 10.1016/j.trb.2019.08.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191261518309044
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.trb.2019.08.012?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. Steven A. Gabriel & David Bernstein, 1997. "The Traffic Equilibrium Problem with Nonadditive Path Costs," Transportation Science, INFORMS, vol. 31(4), pages 337-348, November.
    2. Yang, Hai & Yang, Teng, 2011. "Equilibrium properties of taxi markets with search frictions," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 696-713, May.
    3. Yang, Hai & Leung, Cowina W.Y. & Wong, S.C. & Bell, Michael G.H., 2010. "Equilibria of bilateral taxi-customer searching and meeting on networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 1067-1083, September.
    4. Yang, Hai & Wong, S. C. & Wong, K. I., 2002. "Demand-supply equilibrium of taxi services in a network under competition and regulation," Transportation Research Part B: Methodological, Elsevier, vol. 36(9), pages 799-819, November.
    5. (Jeff) Ban, Xuegang & Ferris, Michael C. & Tang, Lisa & Lu, Shu, 2013. "Risk-neutral second best toll pricing," Transportation Research Part B: Methodological, Elsevier, vol. 48(C), pages 67-87.
    6. Xu, Huayu & Pang, Jong-Shi & Ordóñez, Fernando & Dessouky, Maged, 2015. "Complementarity models for traffic equilibrium with ridesharing," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 161-182.
    7. Patrick T. Harker, 1988. "Multiple Equilibrium Behaviors on Networks," Transportation Science, INFORMS, vol. 22(1), pages 39-46, February.
    8. Yang, Hai & Wong, S. C., 1998. "A network model of urban taxi services," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 235-246, May.
    9. Yang, Hai & Zhang, Xiaoning & Meng, Qiang, 2007. "Stackelberg games and multiple equilibrium behaviors on networks," Transportation Research Part B: Methodological, Elsevier, vol. 41(8), pages 841-861, October.
    10. Wong, K.I. & Wong, S.C. & Yang, Hai & Wu, J.H., 2008. "Modeling urban taxi services with multiple user classes and vehicle modes," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 985-1007, December.
    11. Xuegang (Jeff)Ban & Shu Lu & Michael Ferris & Henry X. Liu, 2009. "Risk Averse Second Best Toll Pricing," Springer Books, in: William H. K. Lam & S. C. Wong & Hong K. Lo (ed.), Transportation and Traffic Theory 2009: Golden Jubilee, chapter 0, pages 197-218, Springer.
    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. 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.
    2. Li, Yuanyuan & Liu, Yang, 2021. "Optimizing flexible one-to-two matching in ride-hailing systems with boundedly rational users," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    3. Li, Yuanyuan & Liu, Yang & Xie, Jun, 2020. "A path-based equilibrium model for ridesharing matching," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 373-405.
    4. Li, Sen & Yang, Hai & Poolla, Kameshwar & Varaiya, Pravin, 2021. "Spatial pricing in ride-sourcing markets under a congestion charge," Transportation Research Part B: Methodological, Elsevier, vol. 152(C), pages 18-45.
    5. 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).
    6. Mo, Dong & Chen, Xiqun (Michael) & Zhang, Junlin, 2022. "Modeling and Managing Mixed On-Demand Ride Services of Human-Driven Vehicles and Autonomous Vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 80-119.
    7. Rui Yao & Shlomo Bekhor, 2023. "A general equilibrium model for multi-passenger ridesharing systems with stable matching," Papers 2303.16595, arXiv.org, revised Dec 2023.
    8. Noruzoliaee, Mohamadhossein & Zou, Bo, 2022. "One-to-many matching and section-based formulation of autonomous ridesharing equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 155(C), pages 72-100.
    9. Fan, Rong & Ban, Xuegang (Jeff), 2022. "Commuting service platform: Concept and analysis," Transportation Research Part B: Methodological, Elsevier, vol. 158(C), pages 18-51.
    10. Cai, Zeen & Mo, Dong & Geng, Maosi & Tang, Wei & Chen, Xiqun Michael, 2023. "Integrating ride-sourcing with electric vehicle charging under mixed fleets and differentiated services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 169(C).
    11. Yao, Rui & Bekhor, Shlomo, 2023. "A general equilibrium model for multi-passenger ridesharing systems with stable matching," Transportation Research Part B: Methodological, Elsevier, vol. 175(C).

    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. Di, Xuan & Ban, Xuegang Jeff, 2019. "A unified equilibrium framework of new shared mobility systems," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 50-78.
    2. Ting Wang & Yong Zhang & Meiye Li & Lei Liu, 2019. "How Do Passengers with Different Using Frequencies Choose between Traditional Taxi Service and Online Car-Hailing Service? A Case Study of Nanjing, China," Sustainability, MDPI, vol. 11(23), pages 1-18, November.
    3. Li, Baicheng & Szeto, W.Y., 2021. "Modeling and analyzing a taxi market with a monopsony taxi owner and multiple rentee-drivers," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 1-22.
    4. Li, Baicheng & Szeto, W.Y., 2019. "Taxi service area design: Formulation and analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 308-333.
    5. 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.
    6. Wong, R.C.P. & Szeto, W.Y., 2022. "The effects of peak hour and congested area taxi surcharges on customers’ travel decisions: Empirical evidence and policy implications," Transport Policy, Elsevier, vol. 121(C), pages 78-89.
    7. Wong, R.C.P. & Szeto, W.Y. & Wong, S.C., 2014. "Bi-level decisions of vacant taxi drivers traveling towards taxi stands in customer-search: Modeling methodology and policy implications," Transport Policy, Elsevier, vol. 33(C), pages 73-81.
    8. Fabien Leurent, 2019. "Microeconomics of a taxi service in a ring-shaped city," Working Papers hal-02047269, HAL.
    9. Wenbo Zhang & Satish V. Ukkusuri & Chao Yang, 2018. "Modeling the Taxi Drivers’ Customer-Searching Behaviors outside Downtown Areas," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    10. Nourinejad, Mehdi & Roorda, Matthew J., 2017. "Impact of hourly parking pricing on travel demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 28-45.
    11. Yang, Hai & Yang, Teng, 2011. "Equilibrium properties of taxi markets with search frictions," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 696-713, May.
    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. Thorsten Heilker & Gernot Sieg, 2017. "A duopoly of transportation network companies and traditional radio-taxi dispatch service agencies," Working Papers 24, Institute of Transport Economics, University of Muenster.
    14. Wong, R.C.P. & Szeto, W.Y., 2018. "An alternative methodology for evaluating the service quality of urban taxis," Transport Policy, Elsevier, vol. 69(C), pages 132-140.
    15. Szeto, W.Y. & Wong, R.C.P. & Yang, W.H., 2019. "Guiding vacant taxi drivers to demand locations by taxi-calling signals: A sequential binary logistic regression modeling approach and policy implications," Transport Policy, Elsevier, vol. 76(C), pages 100-110.
    16. Yu, Xinlian & Gao, Song & Hu, Xianbiao & Park, Hyoshin, 2019. "A Markov decision process approach to vacant taxi routing with e-hailing," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 114-134.
    17. 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).
    18. Gholami, Ali & Taghizadeh, Yaser & Tian, Zong, 2014. "Classification of taxi khattee (jitney) lines based on topography and line cost indices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 239-249.
    19. Wang, Xiaolei & Liu, Wei & Yang, Hai & Wang, Dan & Ye, Jieping, 2020. "Customer behavioural modelling of order cancellation in coupled ride-sourcing and taxi markets," Transportation Research Part B: Methodological, Elsevier, vol. 132(C), pages 358-378.
    20. Qian, Xinwu & Ukkusuri, Satish V., 2017. "Taxi market equilibrium with third-party hailing service," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 43-63.

    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:eee:transb:v:129:y:2019:i:c:p:273-304. 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/wps/find/journaldescription.cws_home/548/description#description .

    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.