Designing a Mixed Carpool Mechanism on the Online Cab Service

Abstract

In this paper, we proposed a mixed carpool strategy via social interaction mechanism in the online cab service market. Considering other two individual strategies on cab service, we made a comparison to examined under which conditions existed, the mixed carpool strategy dominated the others. We emphasized the impact of two crucial factors, information heterogeneity between informed and less-informed passengers as well as information exchange insufficiency, on the cabdriver’s earning. Finally, we made a suggestion to the ISPs which exerted themselves in the online cab service.