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    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Incentivizing Rider Time-Shift in a Multi-Leg Public Transportation System</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Megan Shearer</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Michael P. Wellman</string-name>
          <email>wellmang@umich.edu</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>University of Michigan</institution>
          ,
          <country country="US">USA</country>
        </aff>
      </contrib-group>
      <abstract>
        <p>We develop an incentive scheme for a hub-toshuttle campus transit system, encouraging riders to shift travel times to improve system efficiency. Riders are modeled as agents with loss functions in order to evaluate social welfare in the incentive scheme. Incentives are calculated based on a predictive wait-time model trained via Gaussian process regression. Experiments show that the system's total loss decreases, but the average wait time increases. This leads to the conclusion that there is room for improvement in the predictive wait time model.</p>
      </abstract>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>
        In most public transportation systems, particularly bus
systems, uneven ridership leads to an inefficient use of resources.
There are geographic areas and times within a traffic system
that require different resources, but in a bus system the same
vehicles travel the same routes throughout the day. The goal
of the RITMO project [M
        <xref ref-type="bibr" rid="ref12">aheo et al., 2015</xref>
        , To appear] is to
make public bus systems more efficient. This new system
uses shuttles for segments of bus routes with minimal riders,
allowing buses to focus on high-volume routes.
      </p>
      <p>The RITMO project aims to improve the bus system at the
University of Michigan, by using this hub-to-shuttle system
to address uneven ridership. Figure 1 shows the uneven
demand across the campus bus system map. The idea of the
hub-to-shuttle system is to connect the populous green areas
with buses, and to use shuttles to drive riders in the sparse
blue areas. It would be inefficient to have a single shuttle
service all blue areas on the map, therefore the serviceable area
is broken into zones, which can be seen in Figure 2. A shuttle
will not leave its assigned zone, but rather pickup and deliver
riders from hubs whom wish to travel in multiple zones.</p>
      <p>Along with some physical routes getting significantly more
attention, some temporal routes getting greater traffic volume
causes problems with inefficiency. While it is inevitable that
there will be uneven ridership throughout the day in a
transit system, this paper addresses the problems created by the
same amount of resources being deployed throughout the day
by developing a solution to spread out traffic. Wait times are
assumed to be important to riders and thus a useful tool to
convince them to move to spread traffic. In this paper we
define a wait time to be the time difference between when a rider
requests to be picked up and when she actually boards her first
vehicle. However, in a stochastic transit system like RITMO,
wait times cannot be computed directly at the time the system
would offer an incentive. In this paper, an incentive is defined
as an arbitrary point system that can easily be expanded to
a real quantity. For example, on the Michigan campus meal
points can be allocated to students that alter their requests
times. We specifically use incentives, rather than tolls,
because the RITMO system is for a free campus bus system.
Our goal is to spread riders out over time to reduce the cost
of the system and lower wait times to increase efficiency and
social welfare. Social welfare is the aggregate loss of riders
in the system, plus the cost of providing incentives to riders.</p>
      <p>The main contribution of this paper is the creation of an
agent-based incentive scheme which utilizes a learned
predictive wait time model. The incentive schemes aims to
incentivize riders entering the system to change their departure
time by small intervals. This helps alleviate the number of
riders at a time, while not reducing the satisfaction of
riders, because they still reach their destination on time. The
incentive scheme models the riders as agents, then uses loss
functions for the system and agents, and the expected wait
time to calculate an incentive for each agent to change her
trip starting time, or board time. The incentive model then
decides if an agent should be offered an incentive based on
if the system deems it socially optimal for the agent to move
her travel time. The incentive model is judged by its effects
on the system’s cost and social welfare.</p>
      <p>The creation of a learned predictive wait-time model
partnered with an agent-based incentive model has previously not
been used in transportation pricing. When we first created the
incentive model and did not have a good wait time predictor,
then agents changed their board times to time intervals that
potentially increased their wait times, which decreased the
satisfaction of riders and increased costs to the system. As the
predicted wait time became more accurate the satisfaction and
cost of system improved. Therefore, the design of the
predictive wait time model became integral to the success of the
incentive model. Developing a predictive wait time model is
not straightforward in the RITMO problem space because the
shuttles’ paths are volatile. Our predictive wait time model
uses Gaussian Process Regression [Pedregosa et al., 2011,
Rasmussen, 2004] to find expected wait times for agents
before their trips are scheduled, based on current traffic
information. We evaluate the wait-time model on the accuracy of
its predictions, and whether it helps reduce the average wait
times in the system.
2</p>
    </sec>
    <sec id="sec-2">
      <title>Related Work</title>
      <p>
        This work is part of the RITMO project, a hub-and-shuttle
public transportation project initiated by Pascal V
        <xref ref-type="bibr" rid="ref12">an
Hentenryck [Maheo et al., 2015</xref>
        , To appear]. The hub-and-shuttle
system is the basis of this paper, but previous work from Van
Hentenryck focuses on vehicle routing optimization, while
our work focuses on improving social welfare at high
ridership times by incentivizing riders to change their travel plans.
      </p>
      <p>
        Literature on dynamic transportation pricing mostly
involves finding optimal prices for lanes or roads to reach an
equilibrium for drivers [Sharon et al., 2017,
        <xref ref-type="bibr" rid="ref21">Yin and Lou,
2009</xref>
        , Zhang e
        <xref ref-type="bibr" rid="ref1">t al., 2014</xref>
        ]. These attempt to change routes
rather than departure times. Studies more similar to ours
examine a similar problem of tolls for individuals and road
traffic to achieve a socially optim
        <xref ref-type="bibr" rid="ref5">al solution [de Palma et al.,
2005</xref>
        , Joksimovic e
        <xref ref-type="bibr" rid="ref1">t al., 2014</xref>
        , Li, 2018, Bui et al., 2012].
      </p>
      <p>
        Literature on pricing ride sharing systems strongly
considers surge pricing, or pricing during peak travel time
        <xref ref-type="bibr" rid="ref13 ref2">s
[Banerjee et al., 2015</xref>
        ]. This work studies a two-sided system
because drivers are also part of the pricing scheme, compared
to the RITMO system where drivers are not compensated for
individual trips. There is a study on pricing multi-leg ride
        <xref ref-type="bibr" rid="ref13 ref2">sharing [Teubner and Flath, 2015</xref>
        ], but their pricing scheme
relies solely on trip distance and does not study traffic or
incentivize riders to change requests.
      </p>
      <p>
        Studies using machine learning to predict the wait time for
public transportation riders mainly focus on arrival of buses
on their predetermined route
        <xref ref-type="bibr" rid="ref4">s [Chien et al., 2002</xref>
        , Yu et al.,
2011, 2007]. Ide´ and Ka
        <xref ref-type="bibr" rid="ref7">to [2009</xref>
        ] use Gaussian process
regression to predict the travel time of vehicles in a traffic
network.
      </p>
    </sec>
    <sec id="sec-3">
      <title>3 Incentive Model</title>
      <p>To reduce the number of riders entering the system at high
traffic times, an incentive model aims to incentivize some
riders to change their requested board times by small time
intervals. A rider enters the RITMO system by providing a request
to the scheduler on an app interface. Without an incentive
model, a scheduler immediately processes a riders requests
by finding a trip for the rider, which is illustrated in Figure 3.
Scheduling the requested trip is necessarily beneficial to other
riders in the system, so we introduce an incentive model to
attempt to increase the social welfare of the system by lowering
the aggregate loss of the riders. Figure 4 illustrates the
process of how a scheduler uses the incentive model to handle
a rider’s request. This request contains a rider’s desired trip
information, which inform the scheduler how much the rider
values different aspects of the trip, for instance any aversion
about early arrival at destination. After receiving a request,
the scheduler decides whether or not to provide an incentive
to convince the rider to change her board time. This decision
is based on expected wait times for the rider and similar
riders. If the scheduler decides not to offer an incentive, then the
original request processes by scheduling the trip. If the
scheduler offers an incentive, then the rider decides if she wants to
take the incentive and change her board time, or reject the
incentive and keep her original board time. Once the rider
makes her decision, the scheduler respects the decision and
continues with processing the request.</p>
      <p>Given the information in a request, we model the riders
as agents with loss functions. An agent’s loss increases as
wait time increases, and decreases with the addition of an
incentive. Though every time an agent takes an incentive, the
system endures the cost of that incentive. The entire system
is better off when the agents’ losses in aggregate are lower.
Therefore, the total loss of this system is calculated by the
sum of agent loss plus the incentive costs. This total loss can
be thought of as the negative of social welfare, because the
agents on average are better off with a lower system loss. An
individual agent’s assumed goal is to minimize her own loss.
The goal of the scheduler is to maximize social welfare by
minimizing the total loss of the system.
3.1</p>
      <sec id="sec-3-1">
        <title>Communication Between Scheduler and Agent</title>
        <p>An agent wishes to minimize her own loss and to reach her
destination. The scheduler wants to minimize the net-loss of
the system and get all agents to their desired destinations. The
scheduler breaks a day into t-minute time intervals as a way
to measure congestion at different points. Both the agents and
scheduler are aware of traffic in the market.</p>
        <p>An agent, xi, initiates an interaction by sending a request
with public and private parameters. We assume the scheduler
has full information from agent xi’s request, that is, the
request the scheduler receives reflects all private information.
Given the request, the scheduler decides if the agent should
be offered an incentive i to move the agent’s board time
by t. We calculate the incentive with agent xi’s private loss
function, using values in xi’s request. Once the scheduler
finds i, it looks at congestion and a threshold for incentives.
Congestion is determined by the effects of an agent on the
average wait time at different time intervals.</p>
        <p>If the scheduler determines that i should be given to xi
then it returns her proposal consisting of i and a new board
time. If the scheduler does not think that an incentive should
be offered to xi, then it continues on with scheduling xi’s
ride. If the agent is offered an incentive, then she considers
her potential loss with the proposed board time and her
original requested board time. The agent chooses the board time
that minimizes her loss. Since the scheduler knows the
private parameters of the agent, it can choose an incentive that
it knows will be sufficient to convince an agent to agree to
a time-shift. The scheduler updates agent xi’s request and
continues with scheduling her ride.</p>
      </sec>
      <sec id="sec-3-2">
        <title>Request</title>
        <p>Agents’ requests consist of a set of public and private
parameters that the scheduler uses to assign routes and incentives.
The public parameters within an agent’s request are a trip ID
(i.e., an identifier for agent xi 2 X where X is the set of all
agents), the requested board time lower bound ri, the pickup
stop, and the delivery stop. The private parameters are her
willingness to leave early i, willingness to leave late i, and
malleability to incentives i, which determines how much xi
appraises an incentive in proportion to how the system
values it. Her wait time is the difference between her requested
board time lower bound and her actual pickup time.</p>
      </sec>
      <sec id="sec-3-3">
        <title>Agents’ Loss Function</title>
        <p>Agents have a loss function to evaluate a ride. The elements
of this loss function consist of the travel time, and the effects
of changing the request time if the agent chooses to change
her board time lower bound. The travel time is broken down
into the wait time and the time an agent spends on the actual
trip. We assume agents want lower wait times. Therefore the
wait time is beneficial in calculating an incentive. We assume
that loss increases if the agent does not leave at her intended
time, but an incentive counteracts this by decreasing loss.</p>
        <p>Agent xi’s loss function is formally defined as:
La(xi) = (pi) + i(ri
pi)Ie + i(pi
ri)I`
i i: (1)
The parameters are revealed to the scheduler in xi’s request.
pi is a board time lower bound proposed to agent xi by the
scheduler, where pi 2 fri t; ri; ri + tg. (pi) is the trip
time at pi, where trip time is calculated by the time from pi
to when the agent completes her trip. Ie and I` are indicator
functions where Ie = 1 when ri &gt; pi and Ie = 0 otherwise,
i.e. when the proposal time is earlier than the request time,
and I` = 1 when ri &lt; pi and I` = 0 otherwise.</p>
        <p>The scheduler and agents cannot know exact travel times
until all rides are assigned trips, so the estimated agent loss is
found by:
L^a(xi) = E[ (pi)]+ i(ri pi)Ie+ i(pi ri)I`
i i: (2)
The expected trip time, E[ (pi)] = E[w(pi)] + E[vi].
E[w(pi)] is the predictive wait time model’s estimate at pi,
and E[vi] is an optimization of the minimum trip distance.
The calculation of the estimated wait time is discussed in
section 4.</p>
      </sec>
      <sec id="sec-3-4">
        <title>System’s Loss Function</title>
        <p>The system also endures a loss from each agent and the
incentive it pays her. Therefore, the system’s loss is defined
as the aggregate agents loss, plus the cost of the incentives.
Since the system appraises the incentive at the its true value,
the system’s loss from a rider is defined as:</p>
        <p>Ls(xi) = La(xi) + i:
(3)
The scheduler uses an estimate of (3) to assess the effect an
agent will have on the system, because the agent’s trip is
not scheduled when it uses the loss to calculate an incentive.
Thus, it must use the predictive wait time model to calculate
the expected travel time. The estimation the scheduler uses:</p>
        <p>L^s(xi) = L^a(xi) + i;</p>
        <p>After the termination of the simulation, we evaluate the
system by summing agent loss (3),</p>
        <p>L = X
i=1</p>
        <p>Ls(xi):</p>
      </sec>
      <sec id="sec-3-5">
        <title>Incentive</title>
        <p>Assuming the scheduler knows each agent’s private
parameters, it can find L^a(xi); 8i, and use this to minimize the
system’s loss. We find the minimum incentive for xi by solving:
E[ (ri)] is the estimate loss of at ri. We solve for i in (6):
(7)
If the scheduler offers i found in (7), then agent xi is
guaranteed to do as well as her original request time. However,
it is most likely suboptimal to move all agents, so the
scheduler decides which agents to incentivize the impact on other
agents with similar requests. If the scheduler determines
moving xi to have a positive affect on other agents, then i
is offered to xi, in exchange for xi to change her request time
to pi.</p>
      </sec>
      <sec id="sec-3-6">
        <title>Scheduler Decision</title>
        <p>Once the scheduler calculates an agent’s required incentive, it
must decide whether to offer this incentive to the agent. The
scheduler’s goal is to maximize social welfare, so it offers xi
an incentive if moving xi positively affects the other agents in
aggregate. We determine this using the wait-time estimator to
find the wait time with and without the agent at the requested
time and time intervals around it. We assume that an agent
affects only those requesting trips at the same stop and time
interval. Therefore, we calculate the average estimated wait
time of the original time interval and the intervals around it.
To find the socially optimal option, we find the average
estimated wait when xi is in each time interval. Whichever
provides the lowest average wait time is the interval the scheduler
incentivizes agent xi to move her request time. This decision
is illustrated in Figure 5. We assume lower average wait time
leads to a socially better outcome, because more agents with
requests similar to xi will be better off since a lower average
wait time yields a lower average loss.</p>
      </sec>
      <sec id="sec-3-7">
        <title>Agent Decision</title>
        <p>An agent’s goal is to minimize her own personal loss.
Therefore, she will take an incentive if her overall loss lowers when
she moves her request time to the proposed time. How she
makes this decision is illustrated in Figure 6. An agent does
not particularly care about if she enters at rush hour or not,
but rather if she has a low wait time and reaches her
destination on time. Choosing the board time lower bound with the
lowest loss assures that she achieves these goals.
(4)
(5)
(6)
We also explore the impacts on the incentive model when
agents try to manipulate the system. Agent manipulation
defines an agent attempting to lower her own loss by giving the
scheduler an untruthful board time lower bound. Before an
agent submits her request, she is assumed to have full
knowledge of the system and can determine if she would be
incentivized to change an untruthful request time to her true
desired time. This decision happens before a request is sent,
and how it fits into the incentive model is shown in Figure 7,
and details of her decision are illustrated in Figure 8. A
manipulative agent is only untruthful about her requested board
time, and the other parameters in her request are truthful. The
scheduler is unaware that an agent is untruthful, and assumes
that the distribution of traffic throughout the system remains
the same as if all agents were truthful.
The incentive model is evaluated on its impacts on social
welfare. Our goal is to minimize the system loss (5). This
equation is the sum of the agents’ loss and the incentives
provided to them. Therefore, in minimizing this equation, we
also minimize the agents’ loss, while not providing
unaffordable incentives. Minimizing the agents’ loss should result in
maximizing the social welfare. The baseline for total system
cost is the value of (5) when no incentive scheme is used with
the model.
4</p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>Predictive Wait Time Model</title>
      <p>The goal of the incentive scheme is to convince an agent to
alter her request before the actual trip takes place. To
determine an incentive to provide the agent, the scheduler uses (7).
Thus at the creation time of the request, the scheduler needs
to know the wait time at the requested board time.</p>
      <p>Finding the wait time at a future time step is nontrivial
because the state of the system can change. In the interim,
other agents may enter and alter a shuttle’s path, potentially
affecting the predicted route of an agent at her creation time.
Shuttles may also leave and enter the system in a stochastic
manner.
4.1</p>
      <sec id="sec-4-1">
        <title>Gaussian Process Regression</title>
        <p>We estimate wait times using a model trained with Gaussian
process regression (GPR). GPR generates a nonlinear and
nonparametric model to predict output values. It works by
measuring the distance between points using a kernel
function, and constructing predictions based on a distance-based
weighting of those points. The training is governed by a set
of hyper-parameters [Rasmussen, 2004].</p>
        <p>We chose GPR for its superior performance using the
features available in the stochastic RITMO system. GPR
training requires time cubic in samples, which limited the size of
training sets we could employ in experiments. We use a
radial basis kernel function, k(x; x0) = cexp( 21` (x x0)2),
with white noise. We assume that small changes in features
causes only small changes in a wait time, which makes the
smoothing quality of the radial basis kernel ideal. All of the
features are standardized during training, and data is split
between testing and training sets.
4.2</p>
      </sec>
      <sec id="sec-4-2">
        <title>Feature Selection</title>
        <p>All of the selected features are independent of an agent’s
private variables and pertain to the current state of riders,
vehicles, and stop network: number of agents expected to request
board times in the same zone and time interval; distance of
the predicted closest vehicle; whether requested board stop is
a hub; whether the agent’s pickup and drop-off stops are in
different zones; whether the agent is at a hub and changing
zones (i.e., waiting for a bus rather than shuttle).
4.3</p>
      </sec>
      <sec id="sec-4-3">
        <title>Training Loop</title>
        <p>The training loop begins by running the incentive model once
to generate features and wait times used to train the
predictive wait time model. The training loop and final model
selection is illustrated in Figure 9. Once data is collected from
this initial simulation run, it is split into testing and training
data. The training data is used to train the Gaussian process
regression model. The trained model’s generated parameters
are plugged into the simulation, and used to calculate the
expected wait time on future runs. Next, the simulation runs
again with a smaller proportion of agents offered incentives.
This proportion is determined by offering incentives only to
agents that the scheduler is sure with benefit the system. The
scheduler determines which agents will benefit other agents
more by altering their requests in Section 3.2. Then the same
data extraction and training process are repeated. The data is
extracted and trained until are desired proportions are tested.
After this training loop completes, all wait time models are
used on the incentive model when either the corresponding
proportion of agents are offered incentives, or no agents are
offered incentives. The chosen final model is the combination
of the predictive wait time and incentive models that yields
the lowest total system loss, L, found by (5).
4.4</p>
      </sec>
      <sec id="sec-4-4">
        <title>Evaluation</title>
        <p>The predictive wait time model is evaluated on the accuracy
of its expected wait times and its effects on the actual wait
time. The model is therefore evaluated by its success in
lowering aggregate wait times. The baseline for this comparison
is the system with no incentive scheme.</p>
      </sec>
    </sec>
    <sec id="sec-5">
      <title>Results</title>
      <sec id="sec-5-1">
        <title>Data</title>
        <p>We use a RITMO dataset provided by the RITMO project in
our experiments. This dataset represents bus traffic on the
University of Michigan campus. University bus drivers
manually recorded the number of riders that boarded a bus at each
stop three different months, which then was turned into a
representative distribution of agent requests. There are also sets
of shuttles, buses, and stops to create the University of
Michigan RITMO system.</p>
        <p>To model loss, we added personal preference data
randomly to each agent. These preferences are not meant to
be a realistic model, but rather reasonable values for
evaluation. Using uniform distributions, we generated
preferences, i; i; U [0; 0:1] and i U [0:5; 1:5], which
specify, respectively, willingness to travel early and late, and
how the rider values an incentive proportionally to the
system. We also perturbed the baseline request set to test the
incentive and predictive wait time models on different
traffic spreads on the Michigan campus. Specifically, we added
noise U [ 20; 20] minutes to each rider’s request-creation
time and requested board time.
5.2</p>
      </sec>
      <sec id="sec-5-2">
        <title>Environment Settings</title>
        <p>We consider the RITMO and perturbed datasets, which
contain 37,724 rider requests in the University of Michigan bus
system. This dataset takes place over a 22 hour period. The
system is split into three zones, with between 17 and 31
shuttles in each zone. There are four bus lines with a total of 17
buses.</p>
        <p>For both the incentive and predictive wait time models, we
vary the proportion of agents offered incentives to determine
if this affects the total loss and average wait time. We do
this by only offering agents whom the scheduler is more
convinced will benefit the system by moving. This is determined
by setting a limit on the change in predicted average wait
time, and the scheduler will only offer incentives to agents
that it is more convinced will benefit the other agents around
them. We then evaluate the system by the total loss and
average wait time at the different proportion of agents offered
incentives.</p>
        <p>In the incentive model we test all non-manipulative agents,
and all manipulative agents. We train the predictive wait time
model on a set of 1,000 requests. Each experiment is run with
10 different random seeds to produce 95% confidence
intervals on the following graphs. Lastly, the baseline is defined
as the total loss or wait time of the system when no incentives
are offered.
The incentive model is evaluated by the total system loss for
non-manipulative and manipulative agents. The goal is to
lower these from their initial baseline values. The results of
the total system loss with the predictive wait time model on
the RITMO and perturbed data are presented in Figures 10
and 11, respectively.</p>
        <p>Figure 10 shows for non-manipulative and manipulative
agents the total system loss initially decreases by an
insignificant amount from the baseline value, depicted by the black
line, then dramatically increases. The difference in
proportion of agents offered incentives is determined by a threshold
placed on the certainty of the scheduler that moving an agent
will benefit the system. Therefore, when more agents are
offered incentives, there is a lower threshold on the certainty
of the scheduler, and the maximum proportion in Figure 10
occurs when any agent may potentially benefit the system by
moving. The result that the loss increases as more agents
are offered incentives demonstrates an inaccuracy in the
system, because ideally the scheduler should not be offering that
many agents, if any at all, incentives that would cause the
total loss to increase. This is mainly an issue because the goal
of the system is to lower the loss of the agents in aggregate, a
goal which is clearly not being achieved. The loss slightly
increases when agents are manipulative, but not by a significant
amount compared to non-manipulative agents.</p>
        <p>Figure 11 shows the total loss of the perturbed data set.
The perturbed data yields a similar result to RITMO data, but
when a lower proportion of agents are offered incentives the
total loss lowers by a significant amount. One more thing
to note is that the confidence intervals are tighter on the
perturbed data compared to the RITMO data, and there is less
variation between the cases with and without manipulation.
This is most likely caused by the method of perturbation
making the traffic spread more stable and have slightly lower
peaks at high traffic times.
The predictive wait time model is evaluated by the average
wait time at the end of the simulation. The results of the
average wait time for the RITMO and perturbed data are shown
in Figures 12 and 13, respectively.</p>
        <p>Figure 12 shows the average wait for the RITMO data and
training sets of non-manipulative and manipulative agents.
This shows the exact same pattern as Figure 10,
demonstrating that the loss and average wait times are directly
related. This allows us to conclude that the inaccuracies with
the scheduler’s decision that an agent will benefit the system
are from problems with the predictive wait time model. If
the predictive wait time model accurately calculated expected
wait times for agents, then the average wait time would lower
when agents took incentives, and as a result the total loss
would lower as well. It also shows that the incentive model
is behaving how we would expect because there is a direct
relationship between the average wait and total loss.
Therefore, we can come to the conclusion that to improve the entire
model, we need to improve the predictive wait time model.</p>
        <p>The average wait time of the perturbed data is shown in
Figure 13. Like the RITMO data, the average wait time shows
a similar pattern as the total loss. While the increase in wait
time as the proportion of agents that take an incentive
increases is similar, the average wait time is always lower when
agents take incentives. This shows that the predictive wait
time model works better on the perturbed data, which is most
likely a result of the stabilization of the perturbed data
discussed in the previous section. Therefore there is potential in
the incentive scheme and predictive wait time model, but we
should proceed in attempting to improve the predicted wait
time model for all datasets.
6</p>
      </sec>
    </sec>
    <sec id="sec-6">
      <title>Conclusion</title>
      <p>We developed an incentive scheme for the RITMO transit
system with a predictive wait-time model. The incentive model
aims to minimize system loss and improve social welfare,
which is defined as the aggregate loss of agents in the
system. In experiments with non-manipulative agents, the total
system loss is successfully lowered compared to the loss in
an unincentivized model. However, the average wait time is
consistently higher for all incentive schemes. Therefore, the
predictive wait time model can be improved.</p>
      <p>The main contributions of this work are the creation of
the agent-based incentive model and learned predictive wait
model. Using learned wait times to calculate incentives for
agents in a stochastic system is an innovative idea because
riders in a transportation system value their time, and thus
want lower wait times. This idea could expanded to a useful
tool for dynamic pricing in any stochastic road network.</p>
      <p>One potential way to improve the predictive wait time
model is to look at traffic at an individual stop, rather than
the entire zone. We could also switch from Gaussian
process regression to a deep neural network, which could better
estimate the unknown, underlying structure of the RITMO
system. Given the relationship in experiments between the
mean squared error and average wait times, improving the
predictive wait time model will greatly improve the success
of the incentive model. Other extensions are to not assume
the scheduler knows private information, and to assume an
estimated distribution of riders, rather than the exact number
of riders. These extensions would make this model more
deployable.</p>
    </sec>
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