A third‐party platoon coordination service: Pricing under government subsidies

Abstract

AbstractThis paper models a platooning system consisting of trucks and a third‐party service provider (TPSP), which performs platoon coordination, distributes the platooning profit in platoons, and charges trucks in exchange for the services. Government subsidies used to incentivize platooning are also considered. We propose a pricing rule for the TPSP, which keeps part of the platooning profit including the subsidy each time a platoon is formed. In addition, a platoon coordination solution based on the distributed model predictive control (MPC) is proposed, in which the pricing rule under government subsidies is integrated. We perform a realistic simulation over the Swedish road network to evaluate the impact of the pricing rule and subsidies on the achieved profits and fuel savings. Our results show that subsidies are an effective mean to boost fuel savings from platooning. Moreover, the simulation study indicates that high pricing corresponds to a low platooning rate of the system, as trucks' incentives for platooning decrease.