Optimal Fare, Vacancy Rate, and Subsidies under Log-Linear Demand with the Consideration of Externalities for a Cruising Taxi Market

Table 1

Parameter and baseline values for the numerical analysis.

Parameters	Unit	Baseline value
Constant term of the demand function ()	—	7.2 × 10^8
Constant term of the waiting time function ()	—	7.5 × 10^6
Price elasticity of taxi demand ()	—	−1.4
		−1
		−0.78
Waiting time elasticity of taxi demand ()	—	−0.2
Vacant mileage elasticity of waiting time ()	—	−1
Maximum social willingness-to-pay ()	NTD/veh.-km	$78.38
Marginal opportunity cost ()	NTD/veh.-km	$20.416
Average loaded passengers for a taxi trip ()	passengers	1.54
Marginal external cost per unit distance for a private highway vehicle trip ()	NTD/person-km	$1.7680
		$0.2779
Probability of passengers switching to private vehicles when they do not want to use taxis ()	%	60.46
Marginal external cost multiplier for a taxi trip ()	—	0.69