A Discounted Trade Reduction Mechanism for Dynamic Ridesharing Pricing

Dynamic ridesharing arranges shared rides for passengers and drivers in real time. Since, in many dynamic ridesharing services, drivers are crowdsourced, the price mechanism design for such services is a fundamental problem. In this paper, a discounted trade reduction mechanism is designed for dynamic ridesharing pricing. Properties of the proposed mechanism are investigated. We also conduct experiments to evaluate the price mechanism. Experimental results show that our mechanism outperforms three double auction baseline mechanisms and illustrate the effect of adjusting the parameter values of our mechanism.