Coalition Formation in Ridesharing with Walking Options

In this work, we introduce a novel coalition formation mechanism for ridesharing services. We extend on the current literature to integrate walking options within the trip, this allows us to effectively account for a user’s value of time when walk- ing, which is not negligible. Additionally, we propose a price allocation method that ensures proportionality for sharing the costs. We formally evaluate the effi- cacy of our pricing method and discuss its desirable properties. Our study is a step towards developing smart mobility systems that recommend optimal ridesharing coalitions to users and suggest cost allocations that are fair and stable.