The models and economics of carpools

For studying carpooling problems, this paper presents two models, namely deterministic and stochastic, and gives the economic explanations to the model solutions. We investigate the jockeying behavior of work commuters between carpooling and driving alone modes through solving each model for both no-toll equilibrium and social optimum. The legit-based stochastic model involves the consideration on preference option of mode choice. Under some assumptions, the paper explains how the amount of carpooling is affected by fuel cost, assembly cost, value of time, preferential or attitudinal factors and traffic congestion. It is found that carpooling is sensitive to traffic congestion reduction only when a congestion externality-based tolling scheme is implemented.