Game theory in carsharing business profit and cost optimization

Abstract

Carpooling is one of the modern ideas for individuals and companies as business based on cooperative theories between participants. The shared supplier and outsourcing the needs is the new thinking after seeing the impact of COVID-19 to the whole world in the last weeks. Thereby the societies and governments practice the effects of sharing to live together as we saw “Stay Home and Save Lives”. This action was cooperative from the whole people to live together better life. This project will go through the game theory cooperative which represent the studying of number of players strategies whether to cooperate or not. In this work we use data about the carpooling companies who serve customers by providing drivers. The target of this study is to minimize the cost for the driver and the companies while both attain the optimum revenue. Transportation networks have endless conditions might affect the motion of a service like this. thereby in the experimentation part we will explore the impact of rewards on the cost decision and drivers cooperating.