Proceedings of the 2017 International Conference on Mechanical, Electronic, Control and Automation Engineering (MECAE 2017)

Stochastic Differential Game Analyses of Tailored Taxi Service Coordination by Cost Sharing Contract

Authors
Haifeng Zhao, Dan Chen
Corresponding Author
Haifeng Zhao
Available Online March 2017.
DOI
10.2991/mecae-17.2017.47How to use a DOI?
Keywords
Tailored Taxi Service; System Coordination; Cost Sharing; Stochastic Differential Game.
Abstract

Cooperation of all the members in the tailored taxi service plays an important role in the development of this fast-developing service industry. The platform enterprise can encourage cooperation from special car drivers by sharing their cost during the service, which we assume can increase the sales by accumulating the reputation of the service model. A differential game model is established with tailored taxi service that consists of one platform enterprise and one special car driver and we derive the optimal solutions of the Stackelberg equilibrium with the platform enterprise as the leader who partially shares the cost of the efforts of the driver and the cooperative game that both layers make efforts together to get the most profits of this system. The results make the benefits of the cost sharing contract in increasing the profits of both players as well as the whole service system, which means that the cost sharing contract is an effective coordination mechanism in the long-term relationship of the members in the service system.

Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2017 International Conference on Mechanical, Electronic, Control and Automation Engineering (MECAE 2017)
Series
Advances in Engineering Research
Publication Date
March 2017
ISBN
10.2991/mecae-17.2017.47
ISSN
2352-5401
DOI
10.2991/mecae-17.2017.47How to use a DOI?
Copyright
© 2017, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Haifeng Zhao
AU  - Dan Chen
PY  - 2017/03
DA  - 2017/03
TI  - Stochastic Differential Game Analyses of Tailored Taxi Service Coordination by Cost Sharing Contract
BT  - Proceedings of the 2017 International Conference on Mechanical, Electronic, Control and Automation Engineering (MECAE 2017)
PB  - Atlantis Press
SP  - 250
EP  - 259
SN  - 2352-5401
UR  - https://doi.org/10.2991/mecae-17.2017.47
DO  - 10.2991/mecae-17.2017.47
ID  - Zhao2017/03
ER  -