Incentive Regulation of Transportation Network Companies

Transportation network companies (TNC's), which include taxis and ridesharing companies, are characterized by economies of density. Double a company's vehicle and customer density and expected waiting time falls. In the past, these economies of density were offset by diseconomies of scale in dispatching, so that industry concentration was modest. Computerization has sharply reduced diseconomies of scale in dispatching and, in the absence of regulation, will lead to increased industry concentration and monopoly power. Research under this seed grant will explore how TNC's should be regulated so as to efficiently balance the reduction in cost from increased industry concentration against the increased exercise of monopoly power. It will apply the theory of incentive regulation, in which "the principal" chooses a set of regulations that provide efficient incentives for "the agent", taking into account that the agent is better informed than the principal. At one level of the incentive scheme, the regulator is the principal and the companies the agents; at another level, the company is the principal and the drivers the agents. The research will provide the cornerstone for a larger, collaborative research grant application to the National Science Foundation on "Integrating Transportation Network Companies into Urban Transportation Systems."

Language

  • English

Project

  • Status: Active
  • Funding: $35,000
  • Contract Numbers:

    DOT 69A3551747114

  • Sponsor Organizations:

    National Center for Sustainable Transportation

    University of California, Davis
    Davis, CA  United States 

    Office of the Assistant Secretary for Research and Technology

    University Transportation Centers Program
    Department of Transportation
    Washington, DC  United States  20590
  • Managing Organizations:

    National Center for Sustainable Transportation

    University of California, Davis
    Davis, CA  United States 

    University of California, Riverside

    Center for Environmental Research and Technology
    900 University Avenue
    Riverside, CA  United States  92521-0425
  • Project Managers:

    Iacobucci, Lauren

  • Performing Organizations:

    National Center for Sustainable Transportation

    University of California, Davis
    Davis, CA  United States 

    University of California, Riverside

    Center for Environmental Research and Technology
    900 University Avenue
    Riverside, CA  United States  92521-0425
  • Principal Investigators:

    Arnott, Richard

  • Start Date: 20180701
  • Expected Completion Date: 20180930
  • Actual Completion Date: 0
  • USDOT Program: University Transportation Centers

Subject/Index Terms

Filing Info

  • Accession Number: 01684129
  • Record Type: Research project
  • Source Agency: National Center for Sustainable Transportation
  • Contract Numbers: DOT 69A3551747114
  • Files: UTC, RiP
  • Created Date: Oct 24 2018 6:31PM