Cost-Sharing Mechanisms for Ride-Sharing
A set of nascent industries focusing on cost-sharing transportation systems such as ridesharing/carsharing have recently emerged. One major impediment for the successful implementation of these types of transportation systems is the determination of the cost-share amount for each participant. The cost-sharing problem has largely been neglected in the literature and is the focus of this talk. One crucial component of a cost-sharing transportation system is the allocation of costs and/or savings to each participant in the system. Without a model to allocate costs and/or savings to each participant in the system, there is no basis to allocate the costs in a fair manner to the participants, thus making it less of an incentive to participate.
This webinar will first identify the desirable properties that a good cost-sharing mechanism shall have and then propose specific mechanisms for the static scenario where all the information for the passengers is known in advance. Their advantages and disadvantages will be analyzed so that transportation planners can select according to their different needs.
Maged M. Dessouky is a Dean's Professor and Chair of the USC Epstein Department of Industrial and Systems Engineering. His research area is transportation system optimization where he has authored over 100 refereed publications. His paper “Optimal Slack Time for Schedule Based Transit Operations” was awarded the INFORMS Transportation Science and Logistics Best Paper Prize.