Mobility operator service capacity sharing contract design to risk-pool against network disruptions

Abstract

We propose a new mechanism to design risk-pooling contracts between operators to improve service resilience during disruptions. We formulate a novel two-stage stochastic multicommodity flow model to determine the cost savings of a coalition under different disruption scenarios and solve it using L-shaped method along with sample average approximation. Computational tests are conducted for network instances with up to 1024 scenarios. The proposed model is applied to a regional multi-operator network in the Randstad area of the Netherlands, for four operators, 40 origin-destination pairs, and over 1400 links where disruption data is available. Using the proposed method, we identify stable cost allocations that could yield a 66% improvement in overall network performance over not having any risk-pooling contract in place. We illustrate the sensitivity of the HTM operator's bargaining power to different network structures and disruption scenarios.

KEYWORDS:

• Horizontal cooperation
• two stage-stochastic programming
• multicommodity flow model
• L-shaped method
• network disruptions
• insurance contracts

Acknowledgements

The authors thank Menno Yap for processing and preparing the empirical data that was used as input to the case study analysis, and to Mengyun Mandy Li for preparing the transit network GIS figure. The first two authors were supported by NSF CMMI-1634973 and C2SMART University Transportation Center (USDOT #69A3551747124). The third author was supported by the CriticalMaaS project (no. 804469) which is financed by the European Research Council and the Amsterdam Institute of Advanced Metropolitan Solutions.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by Division of Civil, Mechanical and Manufacturing Innovation: [Grant Number CMMI-1634973]; H2020 European Research Council: [Grant Number CriticalMaaS no. 804469]; U.S. Department of Transportation: [Grant Number 69A3551747124].