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A macroscopic taxi model for passenger demand, taxi utilization and level of services

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  • Hai Yang
  • Yan Lau
  • Sze Wong
  • Hong Lo

Abstract

In most urban areas taxi services are subject to various types of regulation such as entry restriction and price control. However, effective intervention depends on generating and using suitable information on the demand-supply equilibrium of the taxi market. This paper develops a simultaneous equation system of passenger demand, taxi utilization and level of services based on a taxi service situation found in the urban area of Hong Kong over the last ten years. A set of variables is introduced including number of licensed taxis, taxi fare, disposable income, occupied taxi journey time as exogenous variables and daily taxi passenger demand, passenger waiting time, taxi availability, taxi utilization and average taxi waiting time as endogenous variables. These variables are coupled together through a system of nonlinear simultaneous equations whose parameters are estimated from survey data. The simultaneous equation system can be used to obtain useful regulatory information to assist with the decisions concerning the restriction over the number of taxi licenses and the fixing of the taxi fare structure as well as a range of service quality control. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Hai Yang & Yan Lau & Sze Wong & Hong Lo, 2000. "A macroscopic taxi model for passenger demand, taxi utilization and level of services," Transportation, Springer, vol. 27(3), pages 317-340, June.
    • Handle: RePEc:kap:transp:v:27:y:2000:i:3:p:317-340
    DOI: 10.1023/A:1005289504549
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    References listed on IDEAS

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    1. Yang, Hai & Wong, S. C., 1998. "A network model of urban taxi services," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 235-246, May.
    2. Arnott, Richard, 1996. "Taxi Travel Should Be Subsidized," Journal of Urban Economics, Elsevier, vol. 40(3), pages 316-333, November.
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    Cited by:

    1. Miaoyi Li & Lei Dong & Zhenjiang Shen & Wei Lang & Xinyue Ye, 2017. "Examining the Interaction of Taxi and Subway Ridership for Sustainable Urbanization," Sustainability, MDPI, vol. 9(2), pages 1-12, February.
    2. Xiaofei Ye & Min Li & Zhongzhen Yang & Xingchen Yan & Jun Chen, 2020. "A Dynamic Adjustment Model of Cruising Taxicab Fleet Size Combined the Operating and Flied Survey Data," Sustainability, MDPI, vol. 12(7), pages 1-18, April.
    3. Jia, Wen & Huang, Yu-lin & Zhao, Qun & Qi, Yi, 2022. "Modeling taxi drivers’ decisions at airport based on queueing theory," Research in Transportation Economics, Elsevier, vol. 92(C).
    4. Long, Jiancheng & Szeto, W.Y. & Du, Jie & Wong, R.C.P., 2017. "A dynamic taxi traffic assignment model: A two-level continuum transportation system approach," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 222-254.
    5. Oren Bahat & Shlomo Bekhor, 2016. "Incorporating Ridesharing in the Static Traffic Assignment Model," Networks and Spatial Economics, Springer, vol. 16(4), pages 1125-1149, December.
    6. Xiao Lin & Zhengfeng Huang & Yun Ye & Jingxin Dong & Hongxiang Feng & Pengjun Zheng, 2023. "Effects of Aging on Taxi Service Performance: A Comparative Study Based on Different Age Groups," Sustainability, MDPI, vol. 15(22), pages 1-20, November.
    7. Chen, Chao & Feng, Tao & Ding, Chuan & Yu, Bin & Yao, Baozhen, 2021. "Examining the spatial-temporal relationship between urban built environment and taxi ridership: Results of a semi-parametric GWPR model," Journal of Transport Geography, Elsevier, vol. 96(C).
    8. Wenbo Zhang & Satish V. Ukkusuri & Jian John Lu, 2017. "Impacts of urban built environment on empty taxi trips using limited geolocation data," Transportation, Springer, vol. 44(6), pages 1445-1473, November.
    9. Alonso, Borja & Barreda, Rosa & dell’Olio, Luigi & Ibeas, Angel, 2018. "Modelling user perception of taxi service quality," Transport Policy, Elsevier, vol. 63(C), pages 157-164.
    10. Ofentse Mokwena, 2016. "Paratransit Mesoeconomy: Control Measures From The Supply Side?," Proceedings of Economics and Finance Conferences 3205591, International Institute of Social and Economic Sciences.
    11. Ogus, Anthony, 2002. "Comparing Regulatory Systems: Institutions, Processes and Legal Forms in Industrialised Countries," Centre on Regulation and Competition (CRC) Working papers 30609, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Adrian T. Moore & Ted Balaker, 2006. "Do Economists Reach a Conclusion on Taxi Deregulation?," Econ Journal Watch, Econ Journal Watch, vol. 3(1), pages 109-132, January.
    13. Gholami, Ali & Taghizadeh, Yaser & Tian, Zong, 2014. "Classification of taxi khattee (jitney) lines based on topography and line cost indices," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 239-249.
    14. Majid Zahiri & Jielun Liu & Xiqun (Michael) Chen, 2019. "Taxi Downsizing: A New Approach to Efficiency and Sustainability in the Taxi Industry," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    15. Dali Wei & Changwei Yuan & Hongchao Liu & Dayong Wu & Wesley Kumfer, 2017. "The Impact of Service Refusal to the Supply–Demand Equilibrium in the Taxicab Market," Networks and Spatial Economics, Springer, vol. 17(1), pages 225-253, March.
    16. Wong, R.C.P. & Szeto, W.Y., 2018. "An alternative methodology for evaluating the service quality of urban taxis," Transport Policy, Elsevier, vol. 69(C), pages 132-140.
    17. Zhang, Xiaohu, 2021. "Beyond expected regularity of aggregate urban mobility: A case study of ridesourcing service," Journal of Transport Geography, Elsevier, vol. 95(C).

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