More Web Proxy on the site http://driver.im/

research-article

Public Access

The Price of Fragmentation in Mobility-on-Demand Services

Authors:

Thibault Séjournè,

Samitha Samaranayake,

Siddhartha BanerjeeAuthors Info & Claims

Proceedings of the ACM on Measurement and Analysis of Computing Systems, Volume 2, Issue 2

Article No.: 30, Pages 1 - 26

https://doi.org/10.1145/3224425

Published: 13 June 2018 Publication History

Abstract

Mobility-on-Demand platforms are a fast growing component of the urban transit ecosystem. Though a growing literature addresses the question of how to make individual MoD platforms more efficient, much less is known about the cost of market fragmentation, i.e., the impact on overall welfare due to splitting demand between multiple independent platforms. Our work aims to quantify how much platform fragmentation degrades the efficiency of the system. In particular, we focus on a setting where demand is exogenously split between multiple platforms, and study the increase in supply rebalancing costs incurred by each platform to meet this demand, vis-à-vis the cost incurred by a centralized platform serving the aggregate demand. We show under a large-market scaling, this Price-of-Fragmentation undergoes a phase transition, wherein, depending on the nature of the exogenous demand, the additional cost due to fragmentation either vanishes or grows unbounded. We provide conditions that characterize which regime applies to any given system, and discuss implications of these findings on how such platforms should be regulated.

References

[1]

2017. NYC Taxi Data. (2017). http://www.nyc.gov/html/tlc/html/about/trip_record_data.shtml

[2]

Melika Abolhassani, Mohammad Hossein Bateni, MohammadTaghi Hajiaghayi, Hamid Mahini, and Anshul Sawant. 2014. Network cournot competition. In International Conference on Web and Internet Economics. Springer, 15--29.

[3]

Javier Alonso-Mora, Samitha Samaranayake, Alex Wallar, Emilio Frazzoli, and Daniela Rus. 2017. On-demand highcapacity ride-sharing via dynamic trip-vehicle assignment. Proceedings of the National Academy of Sciences (2017), 201611675.

[4]

Elliot Anshelevich and Shreyas Sekar. 2015. Price Competition in Networked Markets: How do monopolies impact social welfare?. In International Conference on Web and Internet Economics. Springer, 16--30.

Digital Library

[5]

Siddhartha Banerjee, Daniel Freund, and Thodoris Lykouris. 2017. Pricing and Optimization in Shared Vehicle Systems: An Approximation Framework. In Proceedings of the 2017 ACM Conference on Economics and Computation. ACM, 517--517.

Digital Library

[6]

Siddhartha Banerjee, Ramesh Johari, and Carlos Riquelme. 2015. Pricing in ride-sharing platforms: A queueing-theoretic approach. In Proceedings of the Sixteenth ACM Conference on Economics and Computation. ACM, 639--639.

Digital Library

[7]

Siddhartha Banerjee, Yash Kanoria, and Pengyu Qian. 2018. The Value of State Dependent Control in Ridesharing Systems. (2018).

[8]

Kostas Bimpikis, Shayan Ehsani, and Rahmi Ilkilic. 2014. Cournot competition in networked markets. In EC. 733.

Digital Library

[9]

Anton Braverman, JG Dai, Xin Liu, and Lei Ying. 2016. Empty-car routing in ridesharing systems. arXiv preprint arXiv:1609.07219 (2016).

[10]

Desmond Cai, Subhonmesh Bose, and Adam Wierman. 2017. On the role of a market maker in networked cournot competition. arXiv preprint arXiv:1701.08896 (2017).

[11]

David K George. 2012. Stochastic Modeling and Decentralized Control Policies for Large-Scale Vehicle Sharing Systems via Closed Queueing Networks. Ph.D. Dissertation. The Ohio State University.

[12]

Refael Hassin and Moshe Haviv. 2003. To queue or not to queue: Equilibrium behavior in queueing systems. Vol. 59. Springer Science & Business Media.

[13]

David Lingenbrink and Krishnamurthy Iyer. 2017. Optimal Signaling Mechanisms in Unobservable Queues with Strategic Customers. (2017).

Digital Library

[14]

United Nations Department of Economic and Social Affairs. 2015. World Urbanization Prospects: The 2014 Revision. Technical Report. United Nations.

[15]

Erhun Ozkan and Amy R Ward. 2016. Dynamic Matching for Real-Time Ridesharing. (2016).

[16]

Marco Pavone, Stephen L Smith, Emilio Frazzoli, and Daniela Rus. 2012. Robotic load balancing for mobility-on-demand systems. The International Journal of Robotics Research 31, 7 (2012), 839--854.

Digital Library

[17]

Jean-Charles Rochet and Jean Tirole. 2006. Two-sided markets: a progress report. The RAND Journal of Economics 37, 3 (2006), 645--667.

[18]

Marc Rysman. 2009. The economics of two-sided markets. The Journal of Economic Perspectives (2009), 125--143.

[19]

Paolo Santi, Giovanni Resta, Michael Szell, Stanislav Sobolevsky, Steven H Strogatz, and Carlo Ratti. 2014. Quantifying the benefits of vehicle pooling with shareability networks. Proceedings of the National Academy of Sciences 111, 37 (2014), 13290--13294.

[20]

Kevin Spieser, Samitha Samaranayake, Wolfgang Gruel, and Emilio Frazzoli. 2016. Shared-vehicle mobility-on-demand systems: a fleet operator's guide to rebalancing empty vehicles. In Transportation Research Board 95th Annual Meeting.

[21]

Kyle Treleaven, Marco Pavone, and Emilio Frazzoli. 2013. Asymptotically optimal algorithms for one-to-one pickup and delivery problems with applications to transportation systems. IEEE Trans. Automat. Control 58, 9 (2013), 2261--2276.

[22]

John N Tsitsiklis, Kuang Xu, et al. 2012. On the power of (even a little) resource pooling. Stochastic Systems 2, 1 (2012), 1--66.

[23]

E Glen Weyl. 2010. A price theory of multi-sided platforms. The American Economic Review (2010), 1642--1672.

[24]

Rick Zhang and Marco Pavone. 2016. Control of robotic mobility-on-demand systems: a queueing-theoretical perspective. The International Journal of Robotics Research 35, 1--3 (2016), 186--203.

Digital Library

Cited By

Wang CKe J(2024)Modeling a ride-sourcing market with a third-party platform integrator under batch matching mechanismsTransportation Research Part E: Logistics and Transportation Review10.1016/j.tre.2024.103803192(103803)Online publication date: Dec-2024
https://doi.org/10.1016/j.tre.2024.103803
Jiao GRamezani M(2024)A real-time cooperation mechanism in duopoly e-hailing marketsTransportation Research Part C: Emerging Technologies10.1016/j.trc.2024.104598162(104598)Online publication date: May-2024
https://doi.org/10.1016/j.trc.2024.104598
Zhou YKe JYang HGuo P(2024)Platform integration in ride-sourcing markets with heterogeneous passengersTransportation Research Part B: Methodological10.1016/j.trb.2024.103041188(103041)Online publication date: Oct-2024
https://doi.org/10.1016/j.trb.2024.103041
Show More Cited By

Index Terms

The Price of Fragmentation in Mobility-on-Demand Services
1. Networks
  1. Network performance evaluation
    1. Network performance analysis
    2. Network performance modeling

Recommendations

The Price of Fragmentation in Mobility-on-Demand Services
SIGMETRICS '18: Abstracts of the 2018 ACM International Conference on Measurement and Modeling of Computer Systems

Mobility-on-Demand platforms are a fast growing component of the urban transit ecosystem. Though a growing literature addresses the question of how to make individual MoD platforms more efficient, less is known about the cost of market fragmentation, ...
The Price of Fragmentation in Mobility-on-Demand Services
SIGMETRICS '18

Mobility-on-Demand platforms are a fast growing component of the urban transit ecosystem. Though a growing literature addresses the question of how to make individual MoD platforms more efficient, less is known about the cost of market fragmentation, ...
Price Bargaining and Competition in Online Platforms: An Empirical Analysis of the Daily Deal Market
This research studies the determinants of price bargaining and its effect on platform competition in a two-sided market.
The prevalence of online platforms opens new doors to traditional businesses for customer reach and revenue growth. This research investigates platform competition in a setting in which prices are determined by negotiations between platforms (specifically,...

Comments

Please enable JavaScript to view thecomments powered by Disqus.

Information & Contributors

Information

Published In

cover image Proceedings of the ACM on Measurement and Analysis of Computing Systems

Proceedings of the ACM on Measurement and Analysis of Computing Systems Volume 2, Issue 2

June 2018

370 pages

EISSN:2476-1249

DOI:10.1145/3232754

Editors:
Augustin Chaintreau
Columbia University
,
Aditya Akella
University of Wisconsin-Madison
,
Adam Wierman
California Institute of Technology

Issue’s Table of Contents

Copyright © 2018 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 13 June 2018

Published in POMACS Volume 2, Issue 2

Permissions

Request permissions for this article.

Request Permissions

Check for updates

Author Tags

Qualifiers

Research-article

Funding Sources

Army Research Office

Contributors

Other Metrics

View Article Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

20
Total Citations
View Citations
596
Total Downloads

Downloads (Last 12 months)133
Downloads (Last 6 weeks)27

Reflects downloads up to 01 Jan 2025

Other Metrics

View Author Metrics

Citations

Cited By

Wang CKe J(2024)Modeling a ride-sourcing market with a third-party platform integrator under batch matching mechanismsTransportation Research Part E: Logistics and Transportation Review10.1016/j.tre.2024.103803192(103803)Online publication date: Dec-2024
https://doi.org/10.1016/j.tre.2024.103803
Jiao GRamezani M(2024)A real-time cooperation mechanism in duopoly e-hailing marketsTransportation Research Part C: Emerging Technologies10.1016/j.trc.2024.104598162(104598)Online publication date: May-2024
https://doi.org/10.1016/j.trc.2024.104598
Zhou YKe JYang HGuo P(2024)Platform integration in ride-sourcing markets with heterogeneous passengersTransportation Research Part B: Methodological10.1016/j.trb.2024.103041188(103041)Online publication date: Oct-2024
https://doi.org/10.1016/j.trb.2024.103041
Ding XQi QJian S(2024)Truthful online double auctions for on-demand integrated ride-sourcing platformsEuropean Journal of Operational Research10.1016/j.ejor.2023.12.004317:3(737-747)Online publication date: Sep-2024
https://doi.org/10.1016/j.ejor.2023.12.004
Huang GZhao ZYeh A(2024)How shareable is your trip? A path-based analysis of ridesplitting trip shareabilityComputers, Environment and Urban Systems10.1016/j.compenvurbsys.2024.102120110(102120)Online publication date: Jun-2024
https://doi.org/10.1016/j.compenvurbsys.2024.102120
Zhao WHan XSun H(2023)Multi-Level Service Coordination in a Ride-Sourcing MarketSSRN Electronic Journal10.2139/ssrn.4636077Online publication date: 2023
https://doi.org/10.2139/ssrn.4636077
Amirioun MJafarpour SAbdali AGuerrero JKhan B(2023)Resilience-Oriented Scheduling of Shared Autonomous Electric Vehicles: A Cooperation Framework for Electrical Distribution Networks and Transportation SectorJournal of Advanced Transportation10.1155/2023/72917122023(1-14)Online publication date: 14-Apr-2023
https://doi.org/10.1155/2023/7291712
Huang GLian TYeh AZhao Z(2023)To share or not to share? Revealing determinants of individuals’ willingness to share rides through a big data approachTransportation Research Part C: Emerging Technologies10.1016/j.trc.2023.104372157(104372)Online publication date: Dec-2023
https://doi.org/10.1016/j.trc.2023.104372
Huang GLiang YZhao Z(2023)Understanding market competition between transportation network companies using big dataTransportation Research Part A: Policy and Practice10.1016/j.tra.2023.103861178(103861)Online publication date: Dec-2023
https://doi.org/10.1016/j.tra.2023.103861
Ke JYang HWang HYin Y(2023)Introduction of ride-sourcing marketsSupply and Demand Management in Ride-Sourcing Markets10.1016/B978-0-443-18937-1.00013-9(1-23)Online publication date: 2023
https://doi.org/10.1016/B978-0-443-18937-1.00013-9
Show More Cited By

View Options

View options

PDF

View or Download as a PDF file.

eReader

View online with eReader.

Login options

Check if you have access through your login credentials or your institution to get full access on this article.

Full Access

Get this Article

Media

Figures

Other

Tables

View Issue’s Table of Contents