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Mechanism design for first-mile ridesharing based on personalized requirements part II: Solution algorithm for large-scale problems

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  • Bian, Zheyong
  • Liu, Xiang

Abstract

Ridesharing provides travelers with a low-cost and convenient first-mile mobility service. Our Part I paper designed a mechanism to incentivize more travelers to participate in the first-mile ridesharing service accounting for passengers’ personalized requirements on inconvenience attributes of ridesharing. In order to address the computational challenge of obtaining the mechanism for large-scale transportation networks, this paper develops a novel heuristic algorithm, called the Solution Pooling Approach (SPA) for efficiently solving large-scale mechanism design problems in the first-mile ridesharing context. This paper also extends the SPA to solve generalized mechanism design problems, analyzes specific circumstances under which the SPA can sustain the game-theoretic properties, including “individual rationality” and “incentive compatibility”, and identifies its limitations. For the particular application in first-mile ridesharing, the SPA maintains the properties of “individual rationality” and “incentive compatibility”. Numerical experimental results show that the SPA can address the complex first-mile ridesharing service mechanism design problem in a computationally viable and efficient manner.

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  • Bian, Zheyong & Liu, Xiang, 2019. "Mechanism design for first-mile ridesharing based on personalized requirements part II: Solution algorithm for large-scale problems," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 172-192.
    • Handle: RePEc:eee:transb:v:120:y:2019:i:c:p:172-192
    DOI: 10.1016/j.trb.2018.12.014
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    Cited by:

    1. Tafreshian, Amirmahdi & Masoud, Neda, 2022. "A truthful subsidy scheme for a peer-to-peer ridesharing market with incomplete information," Transportation Research Part B: Methodological, Elsevier, vol. 162(C), pages 130-161.
    2. Bian, Zheyong & Liu, Xiang & Bai, Yun, 2020. "Mechanism design for on-demand first-mile ridesharing," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 77-117.
    3. Xi, Haoning & Liu, Wei & Waller, S. Travis & Hensher, David A. & Kilby, Philip & Rey, David, 2023. "Incentive-compatible mechanisms for online resource allocation in Mobility-as-a-Service systems," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 119-147.
    4. Yan, Pengyu & Lee, Chung-Yee & Chu, Chengbin & Chen, Cynthia & Luo, Zhiqin, 2021. "Matching and pricing in ride-sharing: Optimality, stability, and financial sustainability," Omega, Elsevier, vol. 102(C).
    5. Lehua Bi & Shaorui Zhou & Jianjie Ke & Xiaoming Song, 2023. "Knowledge-Mapping Analysis of Urban Sustainable Transportation Using CiteSpace," Sustainability, MDPI, vol. 15(2), pages 1-29, January.
    6. Ding, Xiaoshu & Qi, Qi & Jian, Sisi & Yang, Hai, 2023. "Mechanism design for Mobility-as-a-Service platform considering travelers’ strategic behavior and multidimensional requirements," Transportation Research Part B: Methodological, Elsevier, vol. 173(C), pages 1-30.
    7. Liu, Yining & Ouyang, Yanfeng, 2021. "Mobility service design via joint optimization of transit networks and demand-responsive services," Transportation Research Part B: Methodological, Elsevier, vol. 151(C), pages 22-41.
    8. Zipeng Zhang & Ning Zhang, 2021. "The Morning Commute Problem with Ridesharing When Meet Stochastic Bottleneck," Sustainability, MDPI, vol. 13(11), pages 1-13, May.

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