IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v33y2014icp73-81.html
   My bibliography  Save this article

Bi-level decisions of vacant taxi drivers traveling towards taxi stands in customer-search: Modeling methodology and policy implications

Author

Listed:
  • Wong, R.C.P.
  • Szeto, W.Y.
  • Wong, S.C.

Abstract

This study adopts the sequential logit approach to modeling bi-level decisions of vacant taxi drivers in customer-search. The first level decision is about whether the drivers will travel to one of the nearest taxi stands after dropping off their customers and the second level decision is on whether the drivers will join the queue at the nearest taxi stand once they have arrived there. A stated preference survey was conducted to interview 258 urban taxi drivers about their choices of the two level decisions. The statistical test shows that search districts, travel distance from the customer׳s drop-off location to the designated taxi stand, the congestion level on the way of cruising, as well as the preference for traveling towards taxi stands are found to be the significant factors of the first level decision. This study also confirms that the queue lengths of both taxis and passengers at taxi stands, the expected customer-search distance after leaving taxi stands, and the preference of vacant taxi drivers for staying at taxi stands are found to be significantly influence the second level decision. The likelihood ratio tests for market segmentation analysis demonstrate the variations in preferences of taxi drivers operated in different taxi shifts and service areas. Some policy implications on introducing more taxi stands and improving the utilization rates of taxi stands are also discussed. We believe that the proposed sequential logit modeling approach, findings, and discussions are useful for developing micro-simulation models in terms of evaluating the performance of road traffic networks with taxi services and for developing simulation-based optimization models to answer policy questions related to taxi services.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:trapol:v:33:y:2014:i:c:p:73-81
    DOI: 10.1016/j.tranpol.2014.02.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X14000420
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2014.02.011?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. Watson, Peter L. & Westin, Richard B., 1975. "Transferability of disaggregate mode choice models," Regional Science and Urban Economics, Elsevier, vol. 5(2), pages 227-249, May.
    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. Wai Yuen Szeto & Ryan Cheuk Pong Wong & Sze Chun Wong & Hai Yang, 2013. "A time-dependent logit-based taxi customer-search model," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 17(2), pages 184-198, July.
    5. Wong, K. I. & Wong, S. C. & Yang, Hai, 2001. "Modeling urban taxi services in congested road networks with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 35(9), pages 819-842, November.
    6. Daisuke Nagakura & Masahito Kobayashi, 2009. "Testing The Sequential Logit Model Against The Nested Logit Model," The Japanese Economic Review, Japanese Economic Association, vol. 60(3), pages 345-361, September.
    7. 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.
    8. Wen-Chen Lee & Bor-Wen Cheng, 2008. "Incorporating e-Technology to Advantage in a Greener Taxi Industry and its Impact on Driving Performance and Safety," Transportation Planning and Technology, Taylor & Francis Journals, vol. 31(5), pages 569-588, June.
    9. Yang, Hai & Ye, Min & Tang, Wilson H. & Wong, S.C., 2005. "Regulating taxi services in the presence of congestion externality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 17-40, January.
    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. Yang, Hai & Fung, C.S. & Wong, K.I. & Wong, S.C., 2010. "Nonlinear pricing of taxi services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 337-348, June.
    12. van Ophem, Hans & Schram, Arthur, 1997. "Sequential and Multinomial Logit: A Nested Model," Empirical Economics, Springer, vol. 22(1), pages 131-152.
    13. Kahn, Lawrence M & Morimune, Kimio, 1979. "Unions and Employment Stability: A Sequential Logit Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(1), pages 217-235, February.
    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. Shi, Ying & Lian, Zhaotong, 2016. "Optimization and strategic behavior in a passenger–taxi service system," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1024-1032.
    2. Man Zhang & Dongwei Tian & Jingming Liu & Xuehua Li, 2024. "Analysis of Taxi Demand and Traffic Influencing Factors in Urban Core Area Based on Data Field Theory and GWR Model: A Case Study of Beijing," Sustainability, MDPI, vol. 16(17), pages 1-21, August.
    3. 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.
    4. 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.
    5. Faghih-Imani, Ahmadreza & Anowar, Sabreena & Miller, Eric J. & Eluru, Naveen, 2017. "Hail a cab or ride a bike? A travel time comparison of taxi and bicycle-sharing systems in New York City," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 11-21.
    6. Rongxiang Su & Zhixiang Fang & Ningxin Luo & Jingwei Zhu, 2018. "Understanding the Dynamics of the Pick-Up and Drop-Off Locations of Taxicabs in the Context of a Subsidy War among E-Hailing Apps," Sustainability, MDPI, vol. 10(4), pages 1-24, April.
    7. Xu, Zhengtian & Yin, Yafeng & Zha, Liteng, 2017. "Optimal parking provision for ride-sourcing services," Transportation Research Part B: Methodological, Elsevier, vol. 105(C), pages 559-578.
    8. Anil Yazici, M. & Kamga, Camille & Singhal, Abhishek, 2016. "Modeling taxi drivers’ decisions for improving airport ground access: John F. Kennedy airport case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 48-60.
    9. Wenbo Zhang & Satish V. Ukkusuri & Jian John Lu, 2017. "Impacts of urban built environment on empty taxi trips using limited geolocation data," Transportation, Springer, vol. 44(6), pages 1445-1473, November.
    10. García-Almeida, Desiderio Juan & Klassen, Norbert, 2017. "The influence of knowledge-based factors on taxi competitiveness at island destinations: An analysis on tips," Tourism Management, Elsevier, vol. 59(C), pages 110-122.
    11. Long, Jiancheng & Szeto, W.Y. & Du, Jie & Wong, R.C.P., 2017. "A dynamic taxi traffic assignment model: A two-level continuum transportation system approach," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 222-254.
    12. Yang, Qiaoli & Yang, Bo & Qiao, Zheng & Tang, Min-an & Gao, Fengyang, 2021. "Impact of possible random factors on queue behaviors of passengers and taxis at taxi stand of transport hubs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 580(C).
    13. Xiong, Ziyue & Jian Li, & Wu, Hangbin, 2021. "Understanding operation patterns of urban online ride-hailing services: A case study of Xiamen," Transport Policy, Elsevier, vol. 101(C), pages 100-118.
    14. Aleksander Król & Małgorzata Król, 2019. "A Stochastic Simulation Model for the Optimization of the Taxi Management System," Sustainability, MDPI, vol. 11(14), pages 1-22, July.
    15. 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.
    16. Zhen Wang & Liwei Liu & Yuanfu Shao & Xudong Chai & Baoxian Chang, 2020. "Equilibrium Joining Strategy in a Batch Transfer Queuing System with Gated Policy," Methodology and Computing in Applied Probability, Springer, vol. 22(1), pages 75-99, March.
    17. 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.

    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. 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.
    2. 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.
    3. 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.
    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. 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.
    6. 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.
    7. Long, Jiancheng & Szeto, W.Y. & Du, Jie & Wong, R.C.P., 2017. "A dynamic taxi traffic assignment model: A two-level continuum transportation system approach," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 222-254.
    8. 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.
    9. 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.
    10. 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.
    11. Fabien Leurent, 2019. "Microeconomics of a taxi service in a ring-shaped city," Working Papers hal-02047269, HAL.
    12. 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.
    13. Sathaye, Nakul, 2014. "The optimal design and cost implications of electric vehicle taxi systems," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 264-283.
    14. 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.
    15. 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.
    16. Yang, Jie & Zhao, Daozhi & Wang, Zeyu & Xu, Chunqiu, 2022. "Impact of regulation on on-demand ride-sharing service: Profit-based target vs demand-based target," Research in Transportation Economics, Elsevier, vol. 92(C).
    17. 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.
    18. 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.
    19. (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.
    20. 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.

    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:trapol:v:33:y:2014:i:c:p:73-81. 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/30473/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.