Pricing Vehicle Sharing with Proximity Information

Pricing Vehicle Sharing with Proximity Information Jakub Mareček 1, Robert Shorten 12, Jia Yuan Yu 3 1 IBM Research, Ireland 2 University College Dublin, Ireland 3 Concordia University, Canada October 14, 2018 Abstract For vehicle sharing schemes, where drop-off positions are not fixed, we propose a pricing scheme, where the price depends in part on the distance between where a vehicle is being dropped off and where the closest shared vehicle is parked. Under certain restrictive assumptions, we show that this pricing leads to a socially optimal spread of the vehicles within a region. Introduction The numbers of cars on the roads seem ever increasing, with the consequent issues of congestion on the roads, lack of parking space, and pollution. Car-sharing schemes, which let members use any car in a fleet, promise to reduce the issues considerably [1, 2, 3]. Until the penetration of car sharing in any given area is high enough, however, the distance to travel to pick up a car may be prohibitive. In car-sharing systems, where the pickup and drop-off have to be the same, e.g.