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Optimization and strategic behavior in a passenger–taxi service system

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  • Shi, Ying
  • Lian, Zhaotong

Abstract

We study a passenger–taxi problem in this paper. The objective to maximize the social welfare and optimize the allocation of taxi market resources. We analyze the strategic behavior of passengers who decide whether to join the system or balk in both observable and unobservable cases. In observable case, we obtain the optimal selfish threshold that maximizes their individual revenues and give the conditions of the existence of the optimal selfless threshold that maximize the social welfare. In unobservable case, we discuss the equilibrium strategies for the selfish passengers and derive the optimal arrival rate for the socially concerned passengers. Further, we analyze how the government controls the number of taxis by subsidizing taxis or levying a tax on taxis.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ejores:v:249:y:2016:i:3:p:1024-1032
    DOI: 10.1016/j.ejor.2015.07.031
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    Cited by:

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    2. Hanukov, Gabi & Avinadav, Tal & Chernonog, Tatyana & Yechiali, Uri, 2019. "Performance improvement of a service system via stocking perishable preliminary services," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1000-1011.
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    5. Yang, Qiaoli & Qiao, Zheng & Yang, Bo & Shi, Zhongke, 2021. "Modeling and uncovering the passenger–taxi dynamic queues at taxi station with multiple boarding points using a Markovian environment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 572(C).
    6. Dong, Zhenning & Leng, Mingming, 2021. "Managing on-demand ridesharing operations: Optimal pricing decisions for a ridesharing platform," International Journal of Production Economics, Elsevier, vol. 232(C).
    7. 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.
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    10. Chai, Xudong & Liu, Liwei & Chang, Baoxian & Jiang, Tao & Wang, Zhen, 2019. "On a batch matching system with impatient servers and boundedly rational customers," Applied Mathematics and Computation, Elsevier, vol. 354(C), pages 308-328.
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    13. 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).

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