A Stochastic Analysis and Price Mechanism of Car/Ride-Share System Considering Road Congestion

Abstract

In this paper, we discuss Car/Ride-Share (CRS), a novel concept of transportation service aiming to reduce the uneven distribution of cars in traditional carsharing services and the congestion of customers and vehicles on the road. We model a scenario where CRS service is introduced between a spot (e.g., university, company, etc.) and its nearest train station by a bus company considering the road congestion. We propose an approximation model that decomposes the whole complex system into two queueing models (i.e., CRS model and Road model). The accuracy of the approximation model is verified by extensive simulations. Based on numerical experiments, we discuss the mean total required time (i.e., the sum of the waiting time and the traveling time on the road) for the customers for several road congestion levels, in other words, we discuss the optimal management policy of CRS considering the road congestion. Interestingly, it is turned out that CRS is always effective from the perspective of the required time in the case where the road is not congested. However, the effectiveness of CRS differs depending on the arrival rate of the customers in the congested case; CRS is always ineffective for the low arrival rate, and the optimal occurrence rate of CRS exists for the high arrival rate. Furthermore, we consider a price mechanism problem that gives an attractive solution for all the bus company, car providers and customers.