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Does car sharing help reduce the total number of vehicles?

  • Hua Ke
  • Shiwei ChaiEmail author
  • Rong Cheng
Methodologies and Application
  • 22 Downloads

Abstract

Car sharing has become a non-negligible complement to the existing transportation and is viewed as an environmentally beneficial alternative. In this paper, we develop a game-theoretic model to investigate how the introduction of car sharing has an impact on the market. Our results indicate that car sharing does not always reduce vehicle quantity. Specifically, only when the producing cost and transportation need are below some thresholds and the market size is greater than a threshold, can car sharing decrease the total number of vehicles. Otherwise, the manufacturer can generate a larger profit by increasing its production volume. We also find that the introduction of car sharing always makes the retailer incur loss, but it benefits the manufacturer if the market size is sufficiently large. Finally, our results show that the total number of vehicles does not always increase in sharing service level. In such cases, there is a positive spillover effect: by providing the car-sharing service, the manufacturer generates a larger profit with producing less vehicles, which helps alleviate some urban problems, such as air pollution and congestion.

Keywords

Car sharing Channel competition Car club Spillover effect Game theory Supply chain management 

Notes

Acknowledgements

This work was supported by the National Natural Science Foundation of China (grant number 71371141) and the Fundamental Research Funds for the Central Universities.

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Human and animal rights statement

This article does not contain any studies with human participants or animals performed by any of the authors.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.School of Economics and ManagementTongji UniversityShanghaiChina
  2. 2.Business SchoolShaoxing UniversityShaoxingChina

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