Abstract
Multiple taxi types with different service areas exist in practice. However, to the best of our knowledge, there is no methodology to determine the best service region of each type of restricted area taxi in a taxi market. It is also unclear what the determinant factors are for the design. This paper proposes a nonlinear mixed integer programming model to determine the service areas. The objective is to maximize social welfare. A greedy heuristic is developed to solve the model. Numerical examples are given to show the performance of the heuristic and the determinant factors for the design.
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