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Integrating Empirical Analysis into Analytical Framework: An Integrated Model Structure for On-Demand Transportation

In: AI and Analytics for Smart Cities and Service Systems

Author

Listed:
  • Yuliu Su

    (Singapore University of Technology and Design)

  • Ying Xu

    (Singapore University of Technology and Design)

  • Costas Courcoubetis

    (Singapore University of Technology and Design)

  • Shih-Fen Cheng

    (Singapore Management University)

Abstract

On-demand transportation services have been developing in an irresistible trend since their first launch in public. These services not only transform the urban mobility landscape, but also profoundly change individuals’ travel behavior and demand for cars. In this paper, we propose an integrated model structure which integrates empirical analysis into a discrete choice based analytical framework to investigate a heterogenous population’s choices on transportation mode and car ownership with the presence of ride-hailing. Distinguished from traditional discrete choice models where individuals’ choices are only affected by exogenous variables and are independent of other individuals’ choices, our model extends to capture the endogeneity of supply demand imbalance between ride-hailing service providers and users. Through equilibrium searching and counterfactual analysis, we further quantify the magnitude of impacts of platform operations and government policies on car demand, usage and traffic conditions. The structure of the model and managerial insights are explained in detail.

Suggested Citation

  • Yuliu Su & Ying Xu & Costas Courcoubetis & Shih-Fen Cheng, 2021. "Integrating Empirical Analysis into Analytical Framework: An Integrated Model Structure for On-Demand Transportation," Lecture Notes in Operations Research, in: Robin Qiu & Kelly Lyons & Weiwei Chen (ed.), AI and Analytics for Smart Cities and Service Systems, pages 300-315, Springer.
    • Handle: RePEc:spr:lnopch:978-3-030-90275-9_25
    DOI: 10.1007/978-3-030-90275-9_25
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