The aim of this roject is to implement a simulation of market oriented auction mechanism that may be used by a call center of a taxi company to coordinate a team of taxi drivers that are running at V-city. The assumption is that all agents are all rational, namely, the taxi company agent wishes to maximize the total profit of the company and each taxi driver agent wishes to maximize its own profit earned.
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What is the best bidding strategy for a taxi driver to maximize its own expected payoff in a week under different auctions? How can the taxi driver agent implement a look ahead strategy that will yield a better optimal payoff under the uncertainty in potential customer’s requests?
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What will be the average payoff in a week for the driver agents at different shifts in V‐city if the call-center uses the Vickrey auction mechanism/first price auction?
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What will be the company's total expected payoff in a week under Vicrey auction mechanism and the first‐price‐auction?
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What will be the average waiting time of traveling customer agents if V‐city only has this taxi‐service company operating? What can be changed if the company wishes to impose a policy to minimize the waiting time (say 5 minutes) of the customers.
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Discuss what will you implement a fair profit-‐sharing auction rules under this scenario between the taxi-‐company and the taxi driver agents.