A Game-Theoretic Mechanism to Balance Efficiency and Service Quality in Shared Autonomous Vehicle Systems
Distinguished Research Seminar Series
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Date
04 Dec 2025
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Organiser
Department of Industrial and Systems Engineering, PolyU
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Time
10:00 - 11:30
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Venue
Online via ZOOM
Speaker
Prof. Srinivas Peeta
Remarks
Meeting link will be sent to successful registrants. If you have enquiries regarding E-certificate after the seminar, please contact david.kuo@polyu.edu.hk.
Summary
The deployment of shared autonomous vehicles faces a critical challenge: maximizing vehicle utilization while ensuring acceptable service quality for passengers with varying time sensitivities. We present a novel market-based mechanism that addresses this tradeoff through value-of-time based pricing and compensation. We develop a three-party market structure where passengers self-select into Priority, Standard, or Economy service classes, coupled with dynamic compensation that pays passengers for trip extensions beyond promised arrival times. Using game-theoretic analysis, we prove that truthfulness is a dominant strategy for all participants and establish conditions for market equilibrium. Simulation results demonstrate substantial improvements in system throughput while maintaining clear service differentiation across classes. The compensation mechanism significantly reduces net passenger payments, particularly for Economy class passengers at high utilization levels, validating the framework’s ability to balance system efficiency with individual service quality.
Keynote Speaker
Prof. Srinivas Peeta
Professor
School of Civil and Environmental Engineering and H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, USA
Dr. Srinivas Peeta is the Frederick R. Dickerson Chair and Professor in the School of Civil and Environmental Engineering and the H. Milton Stewart School of Industrial and Systems Engineering at Georgia Institute of Technology. He is also Principal Research Faculty at the Georgia Tech Research Institute. He is the Co-Editor-in-Chief of the journal Transportation Research Part B: Methodological. He was a past Chair of the Transportation Network Modeling Committee of the Transportation Research Board (TRB) of the National Academies. Prior to Georgia Tech, he was the Jack and Kay Hockema Professor at Purdue University up to 2018. Dr. Peeta has authored over 515 technical publications, including over 450 in peer-reviewed journals and conference proceedings. His research interests are multidisciplinary and broadly span transportation and infrastructure systems as well as several methodological domains. He received his B.Tech., M.S. and Ph.D. degrees from the Indian Institute of Technology (Madras), Caltech, and The University of Texas at Austin, respectively.
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