TY - JOUR
T1 - Modeling and analyzing taxi congestion premium in congested cities
AU - Yuan, Changwei
AU - Wu, Dayong
AU - Wei, Dali
AU - Liu, Hongchao
N1 - Funding Information:
This study was supported by National Natural Science Foundation of China (Grant no. 51278057 and no. 51378171), Fok Ying-Tong Education Foundation, China (Grant no. 151075), and Science and Technology Program of Beijing, China (Grant no. Z121100000312101).
Publisher Copyright:
© 2017 Changwei Yuan et al.
PY - 2017
Y1 - 2017
N2 - Traffic congestion is a significant problem in many major cities. Getting stuck in traffic, the mileage per unit time that a taxicab travels will decline significantly. Congestion premium (or so-called low-speed fare) has become an increasingly important income source for taxi drivers. However, the impact of congestion premium on the taxicab market is not widely understood yet. In particular, modeling and analyzing of the taxi fare structure with congestion premium are extremely limited. In this paper, we developed a taxi price equilibrium model, in which the adjustment mechanism of congestion premium on optimizing the taxi driver’s income, balancing the supply and demand, and eventually improving the level of service in the whole taxicab market was investigated. In the final part, we provided a case study to demonstrate the feasibility of the proposed model. The results indicated that the current taxi fare scheme in Beijing is suboptimal, since the gain from the raise of congestion premium cannot compensate for the loss from the demand reduction. Conversely, the optimal fare scheme suggested by our model can effectively reduce the excessive demand and reach the supply-demand equilibrium, while keeping the stability of the driver’s income to the maximum extent.
AB - Traffic congestion is a significant problem in many major cities. Getting stuck in traffic, the mileage per unit time that a taxicab travels will decline significantly. Congestion premium (or so-called low-speed fare) has become an increasingly important income source for taxi drivers. However, the impact of congestion premium on the taxicab market is not widely understood yet. In particular, modeling and analyzing of the taxi fare structure with congestion premium are extremely limited. In this paper, we developed a taxi price equilibrium model, in which the adjustment mechanism of congestion premium on optimizing the taxi driver’s income, balancing the supply and demand, and eventually improving the level of service in the whole taxicab market was investigated. In the final part, we provided a case study to demonstrate the feasibility of the proposed model. The results indicated that the current taxi fare scheme in Beijing is suboptimal, since the gain from the raise of congestion premium cannot compensate for the loss from the demand reduction. Conversely, the optimal fare scheme suggested by our model can effectively reduce the excessive demand and reach the supply-demand equilibrium, while keeping the stability of the driver’s income to the maximum extent.
UR - http://www.scopus.com/inward/record.url?scp=85019703376&partnerID=8YFLogxK
U2 - 10.1155/2017/2619810
DO - 10.1155/2017/2619810
M3 - Article
AN - SCOPUS:85019703376
VL - 2017
JO - Journal of Advanced Transportation
JF - Journal of Advanced Transportation
SN - 0197-6729
M1 - 2619810
ER -