In the current cut-throat prices sensitive and hyper-competitive civil aviation market, this paper goes on to analyze and understand the role played by Low-Cost Carriers. It analyses the rise of the Low-Cost Carrier model in the United States and further the adoption of this model across continents and why this no-frills approach has been a huge success and has evolved the aviation market making it a cut-throat price-sensitive market and by doing so furthering the process of globalization by creating an economic closeness between space and causing a collapse in time and space.
{"title":"Low-Cost Carriers: The Pilots of the Aviation Industry in the Globalized World","authors":"Vistasp Irani","doi":"10.2139/ssrn.3679266","DOIUrl":"https://doi.org/10.2139/ssrn.3679266","url":null,"abstract":"In the current cut-throat prices sensitive and hyper-competitive civil aviation market, this paper goes on to analyze and understand the role played by Low-Cost Carriers. It analyses the rise of the Low-Cost Carrier model in the United States and further the adoption of this model across continents and why this no-frills approach has been a huge success and has evolved the aviation market making it a cut-throat price-sensitive market and by doing so furthering the process of globalization by creating an economic closeness between space and causing a collapse in time and space.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130335619","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
An emerging quantitative spatial economics literature models commuting interactions by a gravity equation that is mathematically equivalent to a multinomial logit model. This model is widely viewed as restrictive because of the independence of irrelevant alternatives (IIA) property that links substitution behavior in response to changes in the attractiveness of choice alternatives to choice probabilities in a mechanistic way. This is relevant for counterfactual analysis. In this paper we examine the appropriateness of the commuting model from a theoretical as well as an empirical point of view. We show that conventional specification tests of the multinomial logit model are of limited use when alternative specific constants are used, as is common in the recent literature, and offer no information with respect to the validity of IIA. In particular, we show that maximum likelihood estimation of relevant nested logit model is impossible because the crucial parameters are not identified. We discuss cross-nested and mixed logit as alternatives. We argue that a comparison between predicted and actual changes in commuting flows in response to a change in the attractiveness of choice alternatives provides a more informative test for the validity of the multinomial logit model for commuting interaction and report the results of such a test – as well as others – for data referring to Copenhagen.
{"title":"Discrete Choice Models for Commuting Interactions","authors":"J. Rouwendal, O. Levkovich, I. Mulalic","doi":"10.2139/ssrn.3021777","DOIUrl":"https://doi.org/10.2139/ssrn.3021777","url":null,"abstract":"An emerging quantitative spatial economics literature models commuting interactions by a gravity equation that is mathematically equivalent to a multinomial logit model. This model is widely viewed as restrictive because of the independence of irrelevant alternatives (IIA) property that links substitution behavior in response to changes in the attractiveness of choice alternatives to choice probabilities in a mechanistic way. This is relevant for counterfactual analysis. In this paper we examine the appropriateness of the commuting model from a theoretical as well as an empirical point of view. We show that conventional specification tests of the multinomial logit model are of limited use when alternative specific constants are used, as is common in the recent literature, and offer no information with respect to the validity of IIA. In particular, we show that maximum likelihood estimation of relevant nested logit model is impossible because the crucial parameters are not identified. We discuss cross-nested and mixed logit as alternatives. We argue that a comparison between predicted and actual changes in commuting flows in response to a change in the attractiveness of choice alternatives provides a more informative test for the validity of the multinomial logit model for commuting interaction and report the results of such a test – as well as others – for data referring to Copenhagen.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"527 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115959544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Problem definition: How to dynamically replenish inventory from two supply sources or shipping modes with general lead times. The fast source is more expensive than the slow source. Academic/practi...
{"title":"Robust Dual Sourcing Inventory Management: Optimality of Capped Dual Index Policies and Smoothing","authors":"Jiankun Sun, J. V. Mieghem","doi":"10.2139/ssrn.2991250","DOIUrl":"https://doi.org/10.2139/ssrn.2991250","url":null,"abstract":"Problem definition: How to dynamically replenish inventory from two supply sources or shipping modes with general lead times. The fast source is more expensive than the slow source. Academic/practi...","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131193817","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Problem definition: Recently, there has been a rapid rise of on-demand ride-hailing platforms, such as Uber and Didi, which allow passengers with smartphones to submit trip requests and match them to drivers based on their locations and drivers’ availability. This increased demand has raised questions about how such a new matching mechanism will affect the efficiency of the transportation system—in particular, whether it will help reduce passengers’ average waiting time compared with traditional street-hailing systems. Academic/practical relevance: The on-demand ride-hailing problem has gained much academic interest recently. The results we find in the ride-hailing system have a significant deviation from classic queueing theory where en route time does not play a role. Methodology: In this paper, we shed light on this question by building a stylized model of a circular road and comparing the average waiting times of passengers under various matching mechanisms. Results: We discover the inefficiency in the on-demand ride-hailing system when the en route time is long, which may result in nonmonotonicity of passengers’ average waiting time as the passenger arrival rate increases. After identifying key trade-offs between different mechanisms, we find that the on-demand matching mechanism could result in lower efficiency than the traditional street-hailing mechanism when the system utilization level is medium and the road length is long. Managerial implications: To overcome the disadvantage of both systems, we further propose adding response caps to the on-demand ride-hailing mechanism and develop a heuristic method to calculate a near-optimal cap. We also examine the impact of passenger abandonments, idle time strategies of taxis, and traffic congestion on the performance of the ride-hailing systems. The results of this research would be instrumental for understanding the trade-offs of the new service paradigm and thus enable policy makers to make more informed decisions when enacting regulations for this emerging service paradigm.
{"title":"We are on the Way: Analysis of On-Demand Ride-Hailing Systems","authors":"Guiyun Feng, Guangwen Kong, Zizhuo Wang","doi":"10.2139/ssrn.2960991","DOIUrl":"https://doi.org/10.2139/ssrn.2960991","url":null,"abstract":"Problem definition: Recently, there has been a rapid rise of on-demand ride-hailing platforms, such as Uber and Didi, which allow passengers with smartphones to submit trip requests and match them to drivers based on their locations and drivers’ availability. This increased demand has raised questions about how such a new matching mechanism will affect the efficiency of the transportation system—in particular, whether it will help reduce passengers’ average waiting time compared with traditional street-hailing systems. Academic/practical relevance: The on-demand ride-hailing problem has gained much academic interest recently. The results we find in the ride-hailing system have a significant deviation from classic queueing theory where en route time does not play a role. Methodology: In this paper, we shed light on this question by building a stylized model of a circular road and comparing the average waiting times of passengers under various matching mechanisms. Results: We discover the inefficiency in the on-demand ride-hailing system when the en route time is long, which may result in nonmonotonicity of passengers’ average waiting time as the passenger arrival rate increases. After identifying key trade-offs between different mechanisms, we find that the on-demand matching mechanism could result in lower efficiency than the traditional street-hailing mechanism when the system utilization level is medium and the road length is long. Managerial implications: To overcome the disadvantage of both systems, we further propose adding response caps to the on-demand ride-hailing mechanism and develop a heuristic method to calculate a near-optimal cap. We also examine the impact of passenger abandonments, idle time strategies of taxis, and traffic congestion on the performance of the ride-hailing systems. The results of this research would be instrumental for understanding the trade-offs of the new service paradigm and thus enable policy makers to make more informed decisions when enacting regulations for this emerging service paradigm.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133966400","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ricardo A. Daziano, Mauricio Sarrias, Benjamin Leard
Abstract Autonomous vehicles use sensing and communication technologies to navigate safely and efficiently with little or no input from the driver. These driverless technologies will create an unprecedented revolution in how people move, and policymakers will need appropriate tools to plan for and analyze the large impacts of novel navigation systems. In this paper we derive semiparametric estimates of the willingness to pay for automation. We use data from a nationwide online panel of 1260 individuals who answered a vehicle-purchase discrete choice experiment focused on energy efficiency and autonomous features. Several models were estimated with the choice microdata, including a conditional logit with deterministic consumer heterogeneity, a parametric random parameter logit, and a semiparametric random parameter logit. We draw three key results from our analysis. First, we find that the average household is willing to pay a significant amount for automation: about $3500 for partial automation and $4900 for full automation. Second, we estimate substantial heterogeneity in preferences for automation, where a significant share of the sample is willing to pay above $10,000 for full automation technology while many are not willing to pay any positive amount for the technology. Third, our semiparametric random parameter logit estimates suggest that the demand for automation is split approximately evenly between high, modest and no demand, highlighting the importance of modeling flexible preferences for emerging vehicle technology.
{"title":"Are Consumers Willing to Pay to Let Cars Drive for Them? Analyzing Response to Autonomous Vehicles","authors":"Ricardo A. Daziano, Mauricio Sarrias, Benjamin Leard","doi":"10.2139/ssrn.2851943","DOIUrl":"https://doi.org/10.2139/ssrn.2851943","url":null,"abstract":"Abstract Autonomous vehicles use sensing and communication technologies to navigate safely and efficiently with little or no input from the driver. These driverless technologies will create an unprecedented revolution in how people move, and policymakers will need appropriate tools to plan for and analyze the large impacts of novel navigation systems. In this paper we derive semiparametric estimates of the willingness to pay for automation. We use data from a nationwide online panel of 1260 individuals who answered a vehicle-purchase discrete choice experiment focused on energy efficiency and autonomous features. Several models were estimated with the choice microdata, including a conditional logit with deterministic consumer heterogeneity, a parametric random parameter logit, and a semiparametric random parameter logit. We draw three key results from our analysis. First, we find that the average household is willing to pay a significant amount for automation: about $3500 for partial automation and $4900 for full automation. Second, we estimate substantial heterogeneity in preferences for automation, where a significant share of the sample is willing to pay above $10,000 for full automation technology while many are not willing to pay any positive amount for the technology. Third, our semiparametric random parameter logit estimates suggest that the demand for automation is split approximately evenly between high, modest and no demand, highlighting the importance of modeling flexible preferences for emerging vehicle technology.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125051945","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Car ownership is lower in urban areas, which is probably related to the availability of better public transport. Better public transport thus may offer the possibility to relieve the many problems (congestion, health, and parking) associated with the presence of cars in urban areas. To investigate this issue, we develop and estimate a model for the simultaneous choice of a residential area and car ownership. The model is estimated on Danish register data for single-earner and dual-earners households in the greater Copenhagen metropolitan area. We pay special attention to accessibility of the metro network which offers particularly high quality public transport. Simulations based on the estimated model show that for the greater Copenhagen area a planned extension of the metro network decreases car ownership by 2-3%. Our results suggest also a substantial increase in t he interest for living in areas close to the metro network, that affects the demographic composition of neighbourhoods.
{"title":"Does Improving Public Transport Decrease Car Ownership? Evidence from the Copenhagen Metropolitan Area","authors":"I. Mulalic, Ninette Pilegaard, J. Rouwendal","doi":"10.2139/ssrn.2710547","DOIUrl":"https://doi.org/10.2139/ssrn.2710547","url":null,"abstract":"Car ownership is lower in urban areas, which is probably related to the availability of better public transport. Better public transport thus may offer the possibility to relieve the many problems (congestion, health, and parking) associated with the presence of cars in urban areas. To investigate this issue, we develop and estimate a model for the simultaneous choice of a residential area and car ownership. The model is estimated on Danish register data for single-earner and dual-earners households in the greater Copenhagen metropolitan area. We pay special attention to accessibility of the metro network which offers particularly high quality public transport. Simulations based on the estimated model show that for the greater Copenhagen area a planned extension of the metro network decreases car ownership by 2-3%. Our results suggest also a substantial increase in t he interest for living in areas close to the metro network, that affects the demographic composition of neighbourhoods.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"284 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125028843","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. H. van der Weijde, E. Verhoef, Vincent A.C. van den Berg
We analyze the behavior of market participants in a multi-modal commuter network, where roads are not priced, but public transport has a usage fee, which is set while taking the effects on the roads into account. In particular, we analyze the difference between markets with a monopolistic public transport operator, which operates all public transport links, and markets in which separate operators own each public transport link. To do so, we consider a simple dynamic transport network consisting of two serial segments and two parallel congestible modes of transport. We obtain a reduced form of the public transport operator’s optimal fare setting problem and show that, even if the total travel demand is inelastic, serial Bertrand–Nash competition on the public transport links leads to different fares than a serial monopoly; a result not observed in a static model. This results from the fact that trip timing decisions, and therefore the generalized prices of all commuters, are influenced by all fares in the network. We then use numerical simulations to show that, contrary to the results obtained in classic studies on vertical competition, monopolistic fares are not always lower than duopolistic fares; the opposite can also occur. We also explore how different parameters influence the price differential, and how this affects welfare.
{"title":"Competition in Multi-Modal Transport Networks: A Dynamic Approach","authors":"A. H. van der Weijde, E. Verhoef, Vincent A.C. van den Berg","doi":"10.2139/ssrn.2169964","DOIUrl":"https://doi.org/10.2139/ssrn.2169964","url":null,"abstract":"We analyze the behavior of market participants in a multi-modal commuter network, where roads are not priced, but public transport has a usage fee, which is set while taking the effects on the roads into account. In particular, we analyze the difference between markets with a monopolistic public transport operator, which operates all public transport links, and markets in which separate operators own each public transport link. To do so, we consider a simple dynamic transport network consisting of two serial segments and two parallel congestible modes of transport. We obtain a reduced form of the public transport operator’s optimal fare setting problem and show that, even if the total travel demand is inelastic, serial Bertrand–Nash competition on the public transport links leads to different fares than a serial monopoly; a result not observed in a static model. This results from the fact that trip timing decisions, and therefore the generalized prices of all commuters, are influenced by all fares in the network. We then use numerical simulations to show that, contrary to the results obtained in classic studies on vertical competition, monopolistic fares are not always lower than duopolistic fares; the opposite can also occur. We also explore how different parameters influence the price differential, and how this affects welfare.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133273349","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Whether it was flying cars or jetpacks, we were all promised a compelling vision of the future at some point in our childhoods. And, although it may seem like science fiction, autonomous vehicles — cars that drive themselves — are more than just a promise; they are a growing reality. The widespread coverage in October 2010 of Google’s fleet of Toyota Prii that continue to navigate the highways of California was a clear message to the world that this technology is fact, not fiction. Questions remain, however, as to whether or not the world and the marketplace are ready for this technology.To explore this topic, we conducted an assessment of the current status of autonomous vehicle technologies in the U.S to the best of our own extent. We focused mainly on those technologies that are applicable to modern cars driven on existing, unmodified public roads. Our geographical focus was mainly on the west coast of the United States where a hotbed of activity regarding this technology is located.
{"title":"Autonomous Vehicles for Personal Transport: A Technology Assessment","authors":"M. Moore, B. Lu","doi":"10.2139/SSRN.1865047","DOIUrl":"https://doi.org/10.2139/SSRN.1865047","url":null,"abstract":"Whether it was flying cars or jetpacks, we were all promised a compelling vision of the future at some point in our childhoods. And, although it may seem like science fiction, autonomous vehicles — cars that drive themselves — are more than just a promise; they are a growing reality. The widespread coverage in October 2010 of Google’s fleet of Toyota Prii that continue to navigate the highways of California was a clear message to the world that this technology is fact, not fiction. Questions remain, however, as to whether or not the world and the marketplace are ready for this technology.To explore this topic, we conducted an assessment of the current status of autonomous vehicle technologies in the U.S to the best of our own extent. We focused mainly on those technologies that are applicable to modern cars driven on existing, unmodified public roads. Our geographical focus was mainly on the west coast of the United States where a hotbed of activity regarding this technology is located.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"os-7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-06-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127686884","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The logistics intermodal supply chain represents a unique case of interorganizational relations, sequential interdependence, spatial dispersion, and multiple technologies. This sector of the economy has not received the attention it deserves in the organizational and labor studies literature given its centrality to global commodity chains and production networks. However, this variegated chain of organizations and labor processes reveal some interesting dynamics relevant to organization theory, logistics, supply chain management, labor organization, and social class relations. This paper integrates these various literatures in examining the intermodal supply chain that runs inland from the ocean container vessel to final points of distribution and the interplay between industry structure, organizational forms, and labor conditions. An additional consideration is how existing and changing industrial and organizational forms might either facilitate or impede the organization of labor and the strategies used by employers to reduce costs and increase flexibility. The paper includes a brief case study of the interface and interaction between workers in the port drayage and port terminal sectors of the supply chain.
{"title":"Industry Structure, Organizational Forms, and Labor Dynamics in the Intermodal Logistics Supply Chain","authors":"David Jaffee","doi":"10.2139/ssrn.1617347","DOIUrl":"https://doi.org/10.2139/ssrn.1617347","url":null,"abstract":"The logistics intermodal supply chain represents a unique case of interorganizational relations, sequential interdependence, spatial dispersion, and multiple technologies. This sector of the economy has not received the attention it deserves in the organizational and labor studies literature given its centrality to global commodity chains and production networks. However, this variegated chain of organizations and labor processes reveal some interesting dynamics relevant to organization theory, logistics, supply chain management, labor organization, and social class relations. This paper integrates these various literatures in examining the intermodal supply chain that runs inland from the ocean container vessel to final points of distribution and the interplay between industry structure, organizational forms, and labor conditions. An additional consideration is how existing and changing industrial and organizational forms might either facilitate or impede the organization of labor and the strategies used by employers to reduce costs and increase flexibility. The paper includes a brief case study of the interface and interaction between workers in the port drayage and port terminal sectors of the supply chain.","PeriodicalId":309560,"journal":{"name":"TransportRN: Transportation Modes","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128322471","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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