Abstract
The emergence of online car-hailing service provides an innovative approach to vehicle booking but has negatively influenced the taxi industry in China. This paper modeled taxi service mode choice based on evolutionary game theory (EGT). The modes included the dispatching and online car-hailing modes. We constructed an EGT framework, including determining the strategies and the payoff matrix. We introduced different behaviors, including taxi company management, driver operation, and passenger choice. This allowed us to model the impact of these behaviors on the evolving process of service mode choice. The results show that adjustments in taxi company, driver, and passenger behaviors impact the evolutionary path and convergence speed of our evolutionary game model. However, it also reveals that, regardless of adjustments, the stable states in the game model remain unchanged. The conclusion provides a basis for studying taxi system operation and management.
Highlights
Different travel modes, including private cars, public transit, taxies, and subways, play a vital role in modern cities
This study explored the dynamic evolution of service mode choice by adopting evolutionary game theory (EGT)
All 4 equilibrium points are evolutionary stable strategy (ESS). This means that when two players make the same decisions, the game system will evolve towards the stable state, which is at the point (x = 0, y = 0) or at the point (x = 1, y = 1)
Summary
Different travel modes, including private cars, public transit, taxies, and subways, play a vital role in modern cities. As the mobile-internet communication technologies have rapidly developed and popularized, different internet platforms such as Uber, Didi, and Yidao, which can provide the online car-hailing service, appear gradually in China. These platforms provide a preferable booking service and a quick payment system for the passengers by applying an online car-hailing application, which solves the information asymmetry between taxi drivers and passengers effectively. This trip mode is deeply loved by travelers because it does not require passengers to stand on the street to hail a taxi and avoids a long waiting time. It is pointed that this mode still needs to enhance its service quality and security under the supervision and guidance
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