How price optimisation might help to reduce car ownership
Wednesday 27 September 12:00 - 13:00 (via Zoom)
Reducing car ownership has the potential to decrease the carbon footprint of the transportation system. Schemes such as car clubs, car share, short term vehicle rentals and demand responsive shared transport, all have a part to play in a more sustainable transport system by discouraging car ownership. In order for the business models to be sustainable, careful thought needs to be given to pricing. The aim of the work described here is to develop pricing models that allow these schemes to be financially sustainable but still attractive to consumers.
In this webinar we will provide an overview of how price optimisation can be used in these applications. We describe the use of Markov chain models and computer simulation to develop dynamic pricing strategies for car share providers and consider the problem of one-way hires, in which vehicles are picked up and dropped off in different locations. The potential of dynamic programming for solving problems in demand responsive transport will also be discussed.
Christine Currie is a Professor of Operational Research in Mathematical Sciences at the University of Southampton and a member of the Centre for Operational Research, Management Sciences and Information Systems (CORMSIS).
She is Editor-in-Chief for the Journal of Simulation and chair of the OR Society Research Committee. Her research interests include simulation optimization, applications of simulation in health care, optimal pricing and disaster management.