IDEAS home Printed from https://ideas.repec.org/p/ecl/stabus/3636.html
   My bibliography  Save this paper

Carpooling and the Economics of Self-Driving Cars

Author

Listed:
  • Ostrovsky, Michael

    (Stanford University)

  • Schwarz, Michael

    (Microsoft)

Abstract

We study the interplay between autonomous transportation, carpooling, and road pricing. We discuss how improvements in these technologies, and interactions among them, will affect transportation markets. Our main results show how to achieve socially efficient outcomes in such markets, taking into account the costs of driving, road capacity, and commuter preferences. An important component of the efficient outcome is the socially optimal matching of carpooling riders. Our approach shows how to set road prices and how to share the costs of driving and tolls among carpooling riders in a way that implements the efficient outcome.

Suggested Citation

  • Ostrovsky, Michael & Schwarz, Michael, 2018. "Carpooling and the Economics of Self-Driving Cars," Research Papers 3636, Stanford University, Graduate School of Business.
    • Handle: RePEc:ecl:stabus:3636
    as

    Download full text from publisher

    File URL: https://www.gsb.stanford.edu/gsb-cmis/gsb-cmis-download-auth/458091
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jerome Rothenberg, 1960. "Non-Convexity, Aggregation, and Pareto Optimality," Journal of Political Economy, University of Chicago Press, vol. 68, pages 435-435.
    2. Francis M. Bator, 1961. "On Convexity, Efficiency, and Markets: Rejoinder," Journal of Political Economy, University of Chicago Press, vol. 69, pages 489-489.
    3. Starr, Ross M, 1969. "Quasi-Equilibria in Markets with Non-Convex Preferences," Econometrica, Econometric Society, vol. 37(1), pages 25-38, January.
    4. M. J. Farrell, 1959. "The Convexity Assumption in the Theory of Competitive Markets," Journal of Political Economy, University of Chicago Press, vol. 67, pages 377-377.
    5. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    6. Francis M. Bator, 1961. "On Convexity, Efficiency, and Markets," Journal of Political Economy, University of Chicago Press, vol. 69, pages 480-480.
    7. , M. & , Glen & White, Alexander, 2013. "Walrasian equilibrium in large, quasi-linear markets," Theoretical Economics, Econometric Society, vol. 8(2), May.
    8. Tjalling C. Koopmans, 1961. "Convexity Assumptions, Allocative Efficiency, and Competitive Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 69, pages 478-478.
    9. Varaiya, Pravin, 2005. "What We've Learned About Highway Congestion," University of California Transportation Center, Working Papers qt31j7k3b4, University of California Transportation Center.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fos, Vyacheslav & Hamdi, Naser & Kalda, Ankit & Nickerson, Jordan, 2019. "Gig-Labor: Trading Safety Nets for Steering Wheels," CEPR Discussion Papers 13885, C.E.P.R. Discussion Papers.
    2. Boffa, Federico & Fedele, Alessandro & Iozzi, Alberto, 2023. "Congestion and incentives in the age of driverless fleets," Journal of Urban Economics, Elsevier, vol. 137(C).
    3. Budish, Eric B. & Lee, Robin S. & Shim, John J., 2020. "A Theory of Stock Exchange Competition and Innovation: Will the Market Fix the Market?," Working Papers 301, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    4. Ron Yang, 2022. "(Don’t) Take Me Home: Home Preference and the Effect of Self-Driving Trucks on Interstate Trade," NBER Chapters, in: Economics of Artificial Intelligence, National Bureau of Economic Research, Inc.
    5. Martin Adler & Stefanie Peer & Tanja Sinozic, 2019. "Autonomous, Connected, Electric Shared vehicles (ACES) and public finance: an explorative analysis," Tinbergen Institute Discussion Papers 19-005/VIII, Tinbergen Institute.
    6. Berliant, Marcus, 2017. "Commuting and internet traffic congestion," MPRA Paper 77378, University Library of Munich, Germany.
    7. Giulia Brancaccio & Myrto Kalouptsidi & Theodore Papageorgiou & Nicola Rosaia, 2020. "Search Frictions and Efficiency in Decentralized Transportation Markets," NBER Working Papers 27300, National Bureau of Economic Research, Inc.
    8. Francisco Salas-Molina & Juan Antonio Rodr'iguez Aguilar & Filippo Bistaffa, 2020. "Shared value economics: an axiomatic approach," Papers 2006.00581, arXiv.org.
    9. Saxena, Aditya & Gupta, Vallary, 2023. "Carpooling: Who is closest to adopting it? An investigation into the potential car-poolers among private vehicle users: A case of a developing country, India," Transport Policy, Elsevier, vol. 135(C), pages 11-20.
    10. Kalouptsidi, Myrto & Brancaccio, Giulia & Papageorgiou, Theodore & Rosaia, Nicola, 2020. "Search Frictions and Efficiency in Decentralized Transport Markets," CEPR Discussion Papers 14827, C.E.P.R. Discussion Papers.
    11. Giulia Brancaccio & Myrto Kalouptsidi & Theodore Papageorgiou & Nicola Rosaia, 2020. "Search Frictions and Efficiency in Decentralized Transport Markets," Boston College Working Papers in Economics 1010, Boston College Department of Economics.

    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. M. Ali Khan, 2007. "Perfect Competition," PIDE-Working Papers 2007:15, Pakistan Institute of Development Economics.
    2. Martin Bichler & Vladimir Fux & Jacob Goeree, 2018. "A Matter of Equality: Linear Pricing in Combinatorial Exchanges," Information Systems Research, INFORMS, vol. 29(4), pages 1024-1043, December.
    3. Bryan Ellickson, 1977. "Local Public Goods and the Market for Neighborhoods," UCLA Economics Working Papers 100, UCLA Department of Economics.
    4. Kenneth Arrow, 1970. "Political and Economic Evaluation of Social Effects and Externalities," NBER Chapters, in: The Analysis of Public Output, pages 1-30, National Bureau of Economic Research, Inc.
    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. Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
    7. Martin Bichler & Johannes Knörr & Felipe Maldonado, 2023. "Pricing in Nonconvex Markets: How to Price Electricity in the Presence of Demand Response," Information Systems Research, INFORMS, vol. 34(2), pages 652-675, June.
    8. Dennis F. Ellis, 1975. "Non-Convexity and the Optimal Allocation of Risk in an Exchange Economy," The American Economist, Sage Publications, vol. 19(1), pages 10-18, March.
    9. John S.L. McCombie, 2011. "'Cantabrigian Economics' and the aggregate production function," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 8(1), pages 165-182.
    10. Valentin Zelenyuk, 2018. "Some Mathematical and Historical Clarifications on Aggregation in Efficiency and Productivity Analysis and Connection to Economic Theory," CEPA Working Papers Series WP032018, School of Economics, University of Queensland, Australia.
    11. de Palma, André & Lindsey, Robin, 2001. "Optimal timetables for public transportation," Transportation Research Part B: Methodological, Elsevier, vol. 35(8), pages 789-813, September.
    12. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    13. Bich Philippe, 2009. "Existence of pure Nash equilibria in discontinuous and non quasiconcave games," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(3), pages 395-410, November.
    14. Terry E. Daniel & Eyran J. Gisches & Amnon Rapoport, 2009. "Departure Times in Y-Shaped Traffic Networks with Multiple Bottlenecks," American Economic Review, American Economic Association, vol. 99(5), pages 2149-2176, December.
    15. Arnott, Richard & Inci, Eren, 2010. "The stability of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 68(3), pages 260-276, November.
    16. Figueiredo De Oliveira, Gabriel & Cariou, Pierre, 2015. "The impact of competition on container port (in)efficiency," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 124-133.
    17. Golob, Thomas F. & Recker, Wilfred W., 2001. "Relationships Among Urban Freeway Accidents, Traffic Flow, Weather and Lighting Conditions," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt2fh4x5hp, Institute of Transportation Studies, UC Berkeley.
    18. Jacek Buko & Marek Bulsa & Adam Makowski, 2022. "Spatial Premises and Key Conditions for the Use of UAVs for Delivery of Items on the Example of the Polish Courier and Postal Services Market," Energies, MDPI, vol. 15(4), pages 1-17, February.
    19. Tarduno, Matthew, 2021. "The congestion costs of Uber and Lyft," Journal of Urban Economics, Elsevier, vol. 122(C).
    20. Akamatsu, Takashi & Wada, Kentaro & Hayashi, Shunsuke, 2015. "The corridor problem with discrete multiple bottlenecks," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 808-829.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ecl:stabus:3636. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/gsstaus.html .

    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.