In this paper, we propose a highly simplified model as the first step in addressing the above described issue. The
model is simplified in terms of both number of players and number of choices. We assume that the model will
be utilized by a single decision maker and he will choose between two alternatives:
1) serve the general network, and
2) serve a major taxi stand. Despite its simpleness, the
model is adequate in demonstrating the weakness of the
current system. This provides a good starting point for further
studies in more complicated networks and also the design of
mechanisms that would resolve the paradox faced by current
system design.
The paper is organized as follows. In Section II, we
describe the problem and its background, some related works
are also discussed. In Section III, we formally introduce the
service choice model for making service decision at a busy
taxi stand. In Section IV, we discuss how to incorporate
GPS traces into the abstract model we just described. In
Section V, we present a real-world application based on GPS
data obtained through our partner. Finally, we conclude the
paper in Section VI.