Fair Pricing of Ridehailing Services With Asymmetric Demand and Travel Time

This article devises a novel fair pricing policy for the on-demand transportation system under asymmetrical demand patterns. We assume that the city comprises multiple nodes with directed edges connecting the nodes. At each node, passengers arrive according to a Poisson distribution. Based on the arrival processes of the passengers and the operational cost of moving a vehicle from one node to another, we devise a fair pricing scheme for the passengers using the Shapley value. We show that at certain nodes, as the arrival rate or the valuation distribution of the passengers increases, the fair pricing policy increases up to a threshold, and then decreases after a different threshold. Our numerical simulations illustrate the theoretical findings.