Fleet size and fare optimization for taxi under dynamic demand

Abstract In this paper, a bi-level model is proposed, which considers the benefits of taxi driver and passenger. The upper-level model is a bi-objective program. The first objective is to minimize the waiting time of passenger in rush hour. And the second objective is to maximize the income of the driver for one day. The lower-level model is a demand function model, calculating the demand of taxi based on given fleet size and fare. The lower-level model can show the influence of fleet size and fare on the potential demand. At last, the taxi current condition of Dalian city in China is chosen t...