Performance of one-way carsharing systems under combined strategy of pricing and relocations

Abstract

ABSTRACT A bilevel nonlinear mathematical programing model is formulated to determine the optimal pricing and operator-based relocations in a one-way station-based carsharing system in competition with private cars. In the upper level, the carsharing operator determines the vehicle fleet, prices, and relocation operations with the objective of maximizing profits, considering the potential reaction of travelers. In the lower level, travelers choose travel modes from a cost-minimization perspective. Travel utilities are calculated through a logit model. The Karush–Kuhn–Tucker conditions are used to transform the bilevel model into a single-level model and then a genetic algorithm is proposed to solve it. Computational tests in four different scenarios show the combined strategy is the best one. The four scenarios are base, relocations, dynamic pricing, and a combination of relocations and pricing separately. The combined strategy can make the best trade-offs between the operator’s profit and the travelers’ cost.