REGULATING TAXI SERVICES WITH HETEROGENEOUS CUSTOMERS

It is a fact that each traveler has a distinct value of time, depending on how much money or time he/she is willing or able to spend on a particular trip. Instead of using a realistic distribution of the VOT, conventional model assumes an average VOT for all potential customers. This paper presents an investigation of the influence of customers' distinct values of time on the taxi market equilibrium, together with a comparison of different evaluating schemes at various equilibrium solutions. Taxi driver, as an important market component, his/her VOT also plays a key role in determining the taxi market optimal strategies as discussed in this study.