Information Effect in Taxi Service Double Auction with Opportunity Cost: An Experimental Analysis
Inspired by the taxi refusal problem, we propose a double auction for taxi services with a variable supply-and-demand fare surcharge. In contrast to a conventional commodity double auction, our taxi service auction involves an opportunity cost that generally increases with time. Therefore, the bidding behaviour differs from that reported in the literature. We investigate experimentally the effects on bidding behaviour of the opportunity costs and private values of drivers and passengers, as well as of the types of given information. In addition, we compare the realized benefits between passengers and drivers. The results show that the degree of sensitivity to private value differs with opportunity cost and that transaction statistics vary with types of the information given to bidders. Moreover, we found that providing more information to bidders does not necessarily lead to better market performance and that giving suitable information to bidders could lead to a balanced benefit between passenger and driver.
How to Cite
Authors who publish with Engineering Journal agree to transfer all copyright rights in and to the above work to the Engineering Journal (EJ)'s Editorial Board so that EJ's Editorial Board shall have the right to publish the work for nonprofit use in any media or form. In return, authors retain: (1) all proprietary rights other than copyright; (2) re-use of all or part of the above paper in their other work; (3) right to reproduce or authorize others to reproduce the above paper for authors' personal use or for company use if the source and EJ's copyright notice is indicated, and if the reproduction is not made for the purpose of sale.