Academic Journal
Dispatching and Pricing in Two-Sided Spatial Queues.
| Τίτλος: | Dispatching and Pricing in Two-Sided Spatial Queues. |
|---|---|
| Συγγραφείς: | Xu, Ang1 (AUTHOR) angxu@berkeley.edu, Yan, Chiwei1 (AUTHOR) chiwei@berkeley.edu |
| Πηγή: | Transportation Science (INFORMS). Sep/Oct2026, Vol. 60 Issue 5, p828-847. 20p. |
| Θεματικοί όροι: | *Markov processes, *Queuing theory, *Prices, *Dynamic programming, *Ridesharing services, Matching theory |
| Περίληψη: | We study a dispatching and pricing problem in two-sided spatial queues with fixed supply, motivated by ride-hailing and robotaxi platforms. Idle drivers queue on one side, waiting to pick up riders, while riders queue on the other, waiting to be matched with available drivers. The platform seeks to maximize net profit, penalized by rider waiting penalties, by jointly optimizing state-dependent dispatching and pricing decisions. We formulate this problem as a Markov decision process with state-dependent service times that capture key features of spatial matching. We show that, under mild assumptions, the optimal dispatching policy admits a closed-form expression with a zigzag structure. This policy significantly improves the tractability of pricing optimization because of the resulting closed-form stationary distribution and a substantially reduced state space. Building on this insight, we propose an efficient and scalable dynamic programming heuristic to approximate the optimal zigzag policy in more general settings. Extensive numerical experiments with both the analytical model and ride-hailing simulations demonstrate that our algorithm is both near-optimal and highly scalable. Funding: This work was supported by a University of Washington–Amazon Science Hub Faculty Research Award. Supplemental Material: The online appendix is available at https://doi.org/10.1287/trsc.2025.0319. [ABSTRACT FROM AUTHOR] |
| Copyright of Transportation Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
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| Items | – Name: Title Label: Title Group: Ti Data: Dispatching and Pricing in Two-Sided Spatial Queues. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Xu%2C+Ang%22">Xu, Ang</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> angxu@berkeley.edu</i><br /><searchLink fieldCode="AR" term="%22Yan%2C+Chiwei%22">Yan, Chiwei</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> chiwei@berkeley.edu</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Transportation+Science+%28INFORMS%29%22">Transportation Science (INFORMS)</searchLink>. Sep/Oct2026, Vol. 60 Issue 5, p828-847. 20p. – Name: Subject Label: Subject Terms Group: Su Data: *<searchLink fieldCode="DE" term="%22Markov+processes%22">Markov processes</searchLink><br />*<searchLink fieldCode="DE" term="%22Queuing+theory%22">Queuing theory</searchLink><br />*<searchLink fieldCode="DE" term="%22Prices%22">Prices</searchLink><br />*<searchLink fieldCode="DE" term="%22Dynamic+programming%22">Dynamic programming</searchLink><br />*<searchLink fieldCode="DE" term="%22Ridesharing+services%22">Ridesharing services</searchLink><br /><searchLink fieldCode="DE" term="%22Matching+theory%22">Matching theory</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: We study a dispatching and pricing problem in two-sided spatial queues with fixed supply, motivated by ride-hailing and robotaxi platforms. Idle drivers queue on one side, waiting to pick up riders, while riders queue on the other, waiting to be matched with available drivers. The platform seeks to maximize net profit, penalized by rider waiting penalties, by jointly optimizing state-dependent dispatching and pricing decisions. We formulate this problem as a Markov decision process with state-dependent service times that capture key features of spatial matching. We show that, under mild assumptions, the optimal dispatching policy admits a closed-form expression with a zigzag structure. This policy significantly improves the tractability of pricing optimization because of the resulting closed-form stationary distribution and a substantially reduced state space. Building on this insight, we propose an efficient and scalable dynamic programming heuristic to approximate the optimal zigzag policy in more general settings. Extensive numerical experiments with both the analytical model and ride-hailing simulations demonstrate that our algorithm is both near-optimal and highly scalable. Funding: This work was supported by a University of Washington–Amazon Science Hub Faculty Research Award. Supplemental Material: The online appendix is available at https://doi.org/10.1287/trsc.2025.0319. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Transportation Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1287/trsc.2025.0319 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 20 StartPage: 828 Subjects: – SubjectFull: Markov processes Type: general – SubjectFull: Queuing theory Type: general – SubjectFull: Prices Type: general – SubjectFull: Dynamic programming Type: general – SubjectFull: Ridesharing services Type: general – SubjectFull: Matching theory Type: general Titles: – TitleFull: Dispatching and Pricing in Two-Sided Spatial Queues. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Xu, Ang – PersonEntity: Name: NameFull: Yan, Chiwei IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 09 Text: Sep/Oct2026 Type: published Y: 2026 Identifiers: – Type: issn-print Value: 00411655 Numbering: – Type: volume Value: 60 – Type: issue Value: 5 Titles: – TitleFull: Transportation Science (INFORMS) Type: main |
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