A Pareto-efficient market-clearing mechanism for shared-mobility systems Online publication date: Tue, 21-Oct-2014
by Scott Le Vine
International Journal of Automotive Technology and Management (IJATM), Vol. 14, No. 3/4, 2014
Abstract: Shared-mobility services facilitate distinctive forms of personal mobility, and their pay-as-you-go business model has been shown to offer substantial benefits relative to use of privately-owned cars. Such systems in general operate one of two business models, in one case where customers make advance reservations and the other in which use is spontaneous and cannot be reserved with any certainty. This paper proposes a market-clearing mechanism that draws on the strengths and mitigates the weaknesses of each of these two prevailing operating models, by allowing reservations (the right to use the service at a particular time and place in the future) to be traded in a futures market. We show that there is a revenue-positive role for the market-maker of the secondary-exchange market as well as for investors in shared-mobility futures. Introducing a secondary exchange market is Pareto efficient in that shared-mobility services are allocated to customers on the basis of maximum willingness-to-pay rather than first-come-first-served. Finally, from the point of view of each individual customer there would be a step-change in the reliability of accessing shared-mobility vehicles when and where needed, which can be expected to increase overall demand for the service.
Online publication date: Tue, 21-Oct-2014
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Automotive Technology and Management (IJATM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.If you still need assistance, please email firstname.lastname@example.org