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Technical Note—Pricing in On-Demand and One-Way Vehicle-Sharing Networks

Saif Benjaafar; Xiaobing Shen

Department of Industrial and Systems Engineering, University of Minnesota, Minneapolis, Minnesota 55455;

In this paper, we introduce a new method for evaluating the performance of static pricing in one-way vehicle-sharing systems. Our approach, based on a well-known recursive relationship, leads to a series of increasingly tight bounds on the performance of the static pricing policy. These bounds are valid for systems with multiple locations, nonzero travel times, and an arbitrary number of vehicles. They also apply to systems where the static pricing policy does not lead to a fully connected network. Our method results in a family of asymptotically optimal static pricing policies that improve upon previous results in the literature. The approach applies to the case of a single location and yields a bound that is at least as tight as the best known bound.

DOI

10.1287/opre.2023.2446

Volume

71 (5)

Pages

1596-1609

Language

en

Export

BibTeX

Sources

crossref