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A proportional pricing mechanism for ridesharing services with meeting points

A proportional pricing mechanism for ridesharing services with meeting points
A proportional pricing mechanism for ridesharing services with meeting points
Ridesharing is a promising approach for reducing congestion and pollution, and many variants have been studied in the literature over the past decades. In this paper, we consider a novel setting where individuals walk to a common pick-up point and ride together to a single drop-off point from where they walk to their final destination. This setting requires finding the optimal composition of riders and pick-up and drop-off meeting points, as well as an equitable distribution of the costs whereby riders are incentivised to participate. Based on game-theoretic principles, we propose a methodology to determine the optimal pick-up and drop-off points, together with a cost allocation method that is equitable in the sense that it ensures proportionality for sharing the costs, i.e., those who walk more should pay less. We present a formal evaluation of our cost allocation method and empirical evaluation against the Shapley value using real-world and simulated data. Our results show that our approach is computationally more tractable than the Shapley value, as it is linear in time while guaranteeing individual rationality under certain conditions.
Ridesharing, cost allocation, smart mobility, Multiagent Systems, Transportation, Game theory for practical applications
Springer
Cipolina-Kun, Lucia
107bf66a-b641-40f3-a82f-52fb57f523ce
Yazdanpanah, Vahid
28f82058-5e51-4f56-be14-191ab5767d56
Stein, Sebastian
cb2325e7-5e63-475e-8a69-9db2dfbdb00b
Gerding, Enrico
d9e92ee5-1a8c-4467-a689-8363e7743362
Cipolina-Kun, Lucia
107bf66a-b641-40f3-a82f-52fb57f523ce
Yazdanpanah, Vahid
28f82058-5e51-4f56-be14-191ab5767d56
Stein, Sebastian
cb2325e7-5e63-475e-8a69-9db2dfbdb00b
Gerding, Enrico
d9e92ee5-1a8c-4467-a689-8363e7743362

Cipolina-Kun, Lucia, Yazdanpanah, Vahid, Stein, Sebastian and Gerding, Enrico (2022) A proportional pricing mechanism for ridesharing services with meeting points. In, Proceedings of the 24th International Conference on Principles and Practice of Multi-Agent Systems. Springer. (In Press)

Record type: Book Section

Abstract

Ridesharing is a promising approach for reducing congestion and pollution, and many variants have been studied in the literature over the past decades. In this paper, we consider a novel setting where individuals walk to a common pick-up point and ride together to a single drop-off point from where they walk to their final destination. This setting requires finding the optimal composition of riders and pick-up and drop-off meeting points, as well as an equitable distribution of the costs whereby riders are incentivised to participate. Based on game-theoretic principles, we propose a methodology to determine the optimal pick-up and drop-off points, together with a cost allocation method that is equitable in the sense that it ensures proportionality for sharing the costs, i.e., those who walk more should pay less. We present a formal evaluation of our cost allocation method and empirical evaluation against the Shapley value using real-world and simulated data. Our results show that our approach is computationally more tractable than the Shapley value, as it is linear in time while guaranteeing individual rationality under certain conditions.

Text
PRIMA 2022 A Proportional Pricing Mechanism for Ridesharing Services With Meeting Points - Accepted Manuscript
Available under License Creative Commons Attribution.
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More information

Accepted/In Press date: 4 October 2022
Keywords: Ridesharing, cost allocation, smart mobility, Multiagent Systems, Transportation, Game theory for practical applications

Identifiers

Local EPrints ID: 470197
URI: http://eprints.soton.ac.uk/id/eprint/470197
PURE UUID: 0587e3ad-74c7-4b42-9857-0a6b54b24a93
ORCID for Vahid Yazdanpanah: ORCID iD orcid.org/0000-0002-4468-6193
ORCID for Sebastian Stein: ORCID iD orcid.org/0000-0003-2858-8857
ORCID for Enrico Gerding: ORCID iD orcid.org/0000-0001-7200-552X

Catalogue record

Date deposited: 04 Oct 2022 16:48
Last modified: 11 Oct 2022 02:01

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Contributors

Author: Lucia Cipolina-Kun
Author: Vahid Yazdanpanah ORCID iD
Author: Sebastian Stein ORCID iD
Author: Enrico Gerding ORCID iD

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