IDEAS home Printed from https://ideas.repec.org/a/ids/ijatma/v14y2014i3-4p271-285.html
   My bibliography  Save this article

A Pareto-efficient market-clearing mechanism for shared-mobility systems

Author

Listed:
  • Scott Le Vine

Abstract

Shared-mobility services facilitate distinctive forms of personal mobility, and their pay-as-you-go business model has been shown to offer substantial benefits relative to use of privately-owned cars. Such systems in general operate one of two business models, in one case where customers make advance reservations and the other in which use is spontaneous and cannot be reserved with any certainty. This paper proposes a market-clearing mechanism that draws on the strengths and mitigates the weaknesses of each of these two prevailing operating models, by allowing reservations (the right to use the service at a particular time and place in the future) to be traded in a futures market. We show that there is a revenue-positive role for the market-maker of the secondary-exchange market as well as for investors in shared-mobility futures. Introducing a secondary exchange market is Pareto efficient in that shared-mobility services are allocated to customers on the basis of maximum willingness-to-pay rather than first-come-first-served. Finally, from the point of view of each individual customer there would be a step-change in the reliability of accessing shared-mobility vehicles when and where needed, which can be expected to increase overall demand for the service.

Suggested Citation

  • Scott Le Vine, 2014. "A Pareto-efficient market-clearing mechanism for shared-mobility systems," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 14(3/4), pages 271-285.
    • Handle: RePEc:ids:ijatma:v:14:y:2014:i:3/4:p:271-285
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=65293
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    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. Firnkorn, Jörg, 2012. "Triangulation of two methods measuring the impacts of a free-floating carsharing system in Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1654-1672.
    2. Kek, Alvina G.H. & Cheu, Ruey Long & Meng, Qiang & Fung, Chau Ha, 2009. "A decision support system for vehicle relocation operations in carsharing systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 149-158, January.
    3. Fabrizio Ceschin & Carlo Vezzoli, 2010. "The role of public policy in stimulating radical environmental impact reduction in the automotive sector: the need to focus on product-service system innovation," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 10(2/3), pages 321-341.
    4. Carole Donada, 2013. "Electric mobility calls for new strategic tools and paradigm for automakers," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 13(2), pages 167-182.
    5. Jörg Firnkorn & Martin Müller, 2012. "Selling Mobility instead of Cars: New Business Strategies of Automakers and the Impact on Private Vehicle Holding," Business Strategy and the Environment, Wiley Blackwell, vol. 21(4), pages 264-280, May.
    6. Agatz, Niels & Erera, Alan & Savelsbergh, Martin & Wang, Xing, 2012. "Optimization for dynamic ride-sharing: A review," European Journal of Operational Research, Elsevier, vol. 223(2), pages 295-303.
    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. Wagner, Sebastian & Brandt, Tobias & Neumann, Dirk, 2016. "In free float: Developing Business Analytics support for carsharing providers," Omega, Elsevier, vol. 59(PA), pages 4-14.
    2. Golalikhani, Masoud & Oliveira, Beatriz Brito & Carravilla, Maria Antónia & Oliveira, José Fernando & Antunes, António Pais, 2021. "Carsharing: A review of academic literature and business practices toward an integrated decision-support framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    3. Le Vine, Scott & Adamou, Orestes & Polak, John, 2014. "Predicting new forms of activity/mobility patterns enabled by shared-mobility services through a needs-based stated-response method: Case study of grocery shopping," Transport Policy, Elsevier, vol. 32(C), pages 60-68.
    4. Zhao, Meng & Li, Xiaopeng & Yin, Jiateng & Cui, Jianxun & Yang, Lixing & An, Shi, 2018. "An integrated framework for electric vehicle rebalancing and staff relocation in one-way carsharing systems: Model formulation and Lagrangian relaxation-based solution approach," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 542-572.
    5. Mehdi Nourinejad & Matthew Roorda, 2015. "Carsharing operations policies: a comparison between one-way and two-way systems," Transportation, Springer, vol. 42(3), pages 497-518, May.
    6. Ma, Tai-Yu & Rasulkhani, Saeid & Chow, Joseph Y.J. & Klein, Sylvain, 2019. "A dynamic ridesharing dispatch and idle vehicle repositioning strategy with integrated transit transfers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 417-442.
    7. Meng Li & Guowei Hua & Haijun Huang, 2018. "A Multi-Modal Route Choice Model with Ridesharing and Public Transit," Sustainability, MDPI, vol. 10(11), pages 1-14, November.
    8. Moon, Ilkyeong & Feng, Xuehao, 2017. "Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 78-97.
    9. Reis, Anabela & Heitor, Manuel & Amaral, Miguel & Mendonça, Joana, 2016. "Revisiting industrial policy: Lessons learned from the establishment of an automotive OEM in Portugal," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 195-205.
    10. Yu Wang & Shanyong Wang & Jing Wang & Jiuchang Wei & Chenglin Wang, 2020. "An empirical study of consumers’ intention to use ride-sharing services: using an extended technology acceptance model," Transportation, Springer, vol. 47(1), pages 397-415, February.
    11. Jun Guan Neoh & Maxwell Chipulu & Alasdair Marshall, 2017. "What encourages people to carpool? An evaluation of factors with meta-analysis," Transportation, Springer, vol. 44(2), pages 423-447, March.
    12. Kirstin Lindloff & Nadine Pieper & Nils C. Bandelow & David M. Woisetschläger, 2014. "Drivers of carsharing diffusion in Germany: an actor-centred approach," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 14(3/4), pages 217-245.
    13. Dessouky, Maged M & Hu, Shichun, 2021. "Dynamic Routing for Ride-Sharing," Institute of Transportation Studies, Working Paper Series qt6qq8r7hz, Institute of Transportation Studies, UC Davis.
    14. Jokinen, Jani-Pekka & Sihvola, Teemu & Mladenovic, Milos N., 2019. "Policy lessons from the flexible transport service pilot Kutsuplus in the Helsinki Capital Region," Transport Policy, Elsevier, vol. 76(C), pages 123-133.
    15. Meng, Zhiyi & Li, Eldon Y. & Qiu, Rui, 2020. "Environmental sustainability with free-floating carsharing services: An on-demand refueling recommendation system for Car2go in Seattle," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    16. Zhang, Haoran & Chen, Jinyu & Li, Wenjing & Song, Xuan & Shibasaki, Ryosuke, 2020. "Mobile phone GPS data in urban ride-sharing: An assessment method for emission reduction potential," Applied Energy, Elsevier, vol. 269(C).
    17. W. J. A. Heeswijk & M. R. K. Mes & J. M. J. Schutten & W. H. M. Zijm, 2018. "Freight consolidation in intermodal networks with reloads," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 452-485, September.
    18. Huang, Kai & An, Kun & Rich, Jeppe & Ma, Wanjing, 2020. "Vehicle relocation in one-way station-based electric carsharing systems: A comparative study of operator-based and user-based methods," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    19. Zhang, Wenqing & Liu, Liangliang, 2022. "Exploring non-users' intention to adopt ride-sharing services: Taking into account increased risks due to the COVID-19 pandemic among other factors," Transportation Research Part A: Policy and Practice, Elsevier, vol. 158(C), pages 180-195.
    20. Fernando ALMEIDA & Pedro SILVA & Joao LEITE, 2017. "Proposal Of A Carsharing System To Improve Urban Mobility," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 12(3), pages 32-44, April.

    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:ids:ijatma:v:14:y:2014:i:3/4:p:271-285. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=2 .

    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.