Revenue sharing and resource allocation for cooperative multimodal transport systems

Document Type

Journal Article

Publication Date

2024

Subject Area

operations - coordination, economics - revenue, economics - operating costs

Keywords

Multimodal transportation, revenue-sharing

Abstract

The past decade has witnessed a significant growth in the diversity of transport services. The cooperation among different transport service providers (TSPs) helps to reduce operational costs and improve resource utilization rates by pooling the mobility resources together and facilitating the centralized optimal resource allocation. However, TSPs are selfish entities who seek to maximize their own profits. They will form a coalition only when cooperation brings them more benefits. Hence, to ensure the stability of such a coalition, the key challenge lies in designing revenue-sharing schemes that make TSPs better off and the coalition reaches Pareto efficiency, while accounting for individual TSPs’ decentralized resource allocation decisions. In this study, we propose a two-stage hierarchical game theoretical model to design an efficient revenue-sharing rule that can stabilize the coalition. The first stage solves the revenue-sharing problem in a cooperative game, while the second stage solves TSPs’ resource allocation strategies in a decentralized non-cooperative game. We analytically prove the stability and efficiency of the revenue-sharing scheme and derive managerial insights through numerical experiments.

Rights

Permission to publish the abstract has been given by Elsevier, copyright remains with them.

Comments

Transportation Research Part C Home Page:

http://www.sciencedirect.com/science/journal/0968090X

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