Joint matching and pricing for taxi drive-by sensing

Abstract

Drive-by sensing is a promising data collection paradigm that leverages the mobilities of vehicles to survey urban environments at low costs, contributing to the positive externality of urban transport activities. Focusing on e-hailing services, this paper explores the sensing potential of taxi fleets, by designing a joint matching and pricing scheme based on a double auction process. The matching module maximizes the sensing utility by prioritizing trips with high sensing potentials, and the pricing module allocates the corresponding social welfare according to the participants’ contributions to the sensing utility. We show that the proposed scheme is allocative efficient, individually rational, budget balancing, envy-free, and group incentive compatible. The last notion guarantees that the entire group of participants will always end up with the same total utility, regardless of the individual mis-reporting behavior. Extensive numerical tests based on a real-world scenario reveal that the sensing externality can be well aligned with the level of service and budget balance. Various managerial insights regarding the applicability and efficacy of the proposed scheme are generated through scenario-based sensitivity analyses.