Study on Market Equilibrium of Ride Sharing Service Considering Uncertainty of User Matching

Abstract

This paper proposes the market equilibrium model of RS service (especially on shared taxi). The system is described as the model proposed by Daganzo and Ouyang (2019). The user’s behaviour is formulated by a logit-based mode choice model and the supplier behaviour is formulated by the profit maximization problem. Since some variables on the user’s model and the supplier’s model are common, the market equilibrium condition is given by a fixed-point problem. This paper focus on individual mode choice behaviour. For considering individual behaviour, we propose the calculation method of travel time of RS service. We carry out a numerical experiment for demonstrating the proposed model. The result shows that travel time and travel cost of RS service is in trade-off and there is the social optimal service design.