IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v90y2021ics0739885920301918.html
   My bibliography  Save this article

The provision of mobility as a service with autonomous vehicles. The necessity of regulatory schemes for a natural monopoly

Author

Listed:
  • Bahamonde-Birke, Francisco J.
  • Goletz, Mirko
  • Ettema, Dick

Abstract

This paper addresses the provision of Mobility-as-a-Service (MaaS) once autonomous vehicles become available, putting special emphasis on the cost structures of MaaS-providers. The results show the existence of significant economies of scale and, therefore, the market is likely to become a natural monopoly. The difference with the current situation is explained by the absence of a driver and it provides an explanation for the aggressive and deficitary expansion strategies of current TNC providers. Furthermore, given that natural monopolies require regulation in order to avoid losses of social welfare, the paper considers five different regulation scenarios. For this purpose, we also take into account the existence of negative and positive externalities as well as other issues specific to the provision of MaaS, such as spatio-temporal considerations and complementarity/competition with other transport modes.

Suggested Citation

  • Bahamonde-Birke, Francisco J. & Goletz, Mirko & Ettema, Dick, 2021. "The provision of mobility as a service with autonomous vehicles. The necessity of regulatory schemes for a natural monopoly," Research in Transportation Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885920301918
    DOI: 10.1016/j.retrec.2020.100993
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885920301918
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2020.100993?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. Fagnant, Daniel J. & Kockelman, Kara, 2015. "Preparing a nation for autonomous vehicles: opportunities, barriers and policy recommendations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 167-181.
    2. Joskow, Paul L., 2007. "Regulation of Natural Monopoly," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 2, chapter 16, pages 1227-1348, Elsevier.
    3. Judd Cramer & Alan B. Krueger, 2016. "Disruptive Change in the Taxi Business: The Case of Uber," American Economic Review, American Economic Association, vol. 106(5), pages 177-182, May.
    4. Evans, A., 1991. "Are Urban Bus Services Natural Monopolies?," Papers 90-19, Flinders of South Australia - Discipline of Economics.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Cassetta, Ernesto & Marra, Alessandro & Pozzi, Cesare & Antonelli, Paola, 2017. "Emerging technological trajectories and new mobility solutions. A large-scale investigation on transport-related innovative start-ups and implications for policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 1-11.
    3. Nunes, Ashley & Hernandez, Kristen D., 2020. "Autonomous taxis & public health: High cost or high opportunity cost?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 28-36.
    4. Webb, Jeremy, 2019. "The future of transport: Literature review and overview," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 1-6.
    5. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    6. Wang, Wei & Miao, Wei & Liu, Yongdong & Deng, Yiting & Cao, Yunfei, 2022. "The impact of COVID-19 on the ride-sharing industry and its recovery: Causal evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 128-141.
    7. Tarduno, Matthew, 2021. "The congestion costs of Uber and Lyft," Journal of Urban Economics, Elsevier, vol. 122(C).
    8. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    9. Kolarova, Viktoriya & Steck, Felix & Bahamonde-Birke, Francisco J., 2019. "Assessing the effect of autonomous driving on value of travel time savings: A comparison between current and future preferences," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 155-169.
    10. Adam Millard-Ball & Liwei Liu & Whitney Hansen & Drew Cooper & Joe Castiglione, 2023. "Where ridehail drivers go between trips," Transportation, Springer, vol. 50(5), pages 1959-1981, October.
    11. Riham Ahmed Ezzat, 2015. "Paving the way for better telecom performance: Evidence from the telecommunication sector in MENA countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01164199, HAL.
    12. Berger, Thor & Chen, Chinchih & Frey, Carl Benedikt, 2018. "Drivers of disruption? Estimating the Uber effect," European Economic Review, Elsevier, vol. 110(C), pages 197-210.
    13. Pons-Prats, Jordi & Živojinović, Tanja & Kuljanin, Jovana, 2022. "On the understanding of the current status of urban air mobility development and its future prospects: Commuting in a flying vehicle as a new paradigm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    14. Gurumurthy, Krishna Murthy & Kockelman, Kara M., 2021. "Impacts of shared automated vehicles on airport access and operations, with opportunities for revenue recovery: Case Study of Austin, Texas," Research in Transportation Economics, Elsevier, vol. 90(C).
    15. Kräussl, Roman & Kräussl, Zsofia & Pollet, Joshua M. & Rinne, Kalle, 2023. "The performance of marketplace lenders," CFS Working Paper Series 706, Center for Financial Studies (CFS).
    16. Yue Guo & Fu Xin & Xiaotong Li, 2020. "The market impacts of sharing economy entrants: evidence from USA and China," Electronic Commerce Research, Springer, vol. 20(3), pages 629-649, September.
    17. Nordhoff, Sina & Stapel, Jork & van Arem, Bart & Happee, Riender, 2020. "Passenger opinions of the perceived safety and interaction with automated shuttles: A test ride study with ‘hidden’ safety steward," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 508-524.
    18. Agam Gupta & Biswatosh Saha & Parthasarathi Banerjee, 2018. "Pricing decisions of car aggregation platforms in sharing economy: a developing economy perspective," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(5), pages 341-355, October.
    19. Kassens-Noor, Eva & Cai, Meng & Kotval-Karamchandani, Zeenat & Decaminada, Travis, 2021. "Autonomous vehicles and mobility for people with special needs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 385-397.
    20. Yingjie Zhang & Beibei Li & Ramayya Krishnan, 2020. "Learning Individual Behavior Using Sensor Data: The Case of Global Positioning System Traces and Taxi Drivers," Information Systems Research, INFORMS, vol. 31(4), pages 1301-1321, December.

    More about this item

    Keywords

    Autonomous vehicles; MaaS; Regulation; Ride sourcing; JEL; R41;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    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:retrec:v:90:y:2021:i:c:s0739885920301918. 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/620614/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.