TY - JOUR
T1 - Economic analysis of vehicle infrastructure cooperation for driving automation
AU - Vignon, Daniel A.
AU - Yin, Yafeng
AU - Bahrami, Sina
AU - Laberteaux, Ken
N1 - Funding Information:
The work described in this paper was partly supported by research grants from the National Science Foundation ( CMMI-1904575 ) and Toyota Motor Engineering & Manufacturing North America (TMNA).
Publisher Copyright:
© 2022 Elsevier Ltd
PY - 2022/9
Y1 - 2022/9
N2 - The current approach to driving automation has been primarily vehicle-centric. However, a vehicle-infrastructure cooperative approach, in which infrastructure and vehicles cooperate to perform the different driving tasks, may prevail in enabling automated driving. This paper conducts an economic analysis of vehicle infrastructure cooperation for automated driving. In doing so, we present a model that captures investment decisions in vehicle automation and infrastructure digitalization and their effect on travelers’ purchase and travel decisions. Our analysis shows that, under certain conditions, equipping both infrastructure and vehicles is socially optimal. However, by analyzing strategic interactions between infrastructure support service providers and automakers, we show that lack of coordination between these two actors results in suboptimal investment in vehicle automation and infrastructure digitalization. Especially, when these two technologies are complementary, service providers are reluctant to invest in digital infrastructure and vehicle manufacturers tend to over equip their vehicles so as to avoid relying on infrastructure technology. Thus, we conclude by showing that better coordination between automakers and service providers – under the form of profit sharing – is welfare-improving and could potentially yield the socially optimal levels of automation and digitalization.
AB - The current approach to driving automation has been primarily vehicle-centric. However, a vehicle-infrastructure cooperative approach, in which infrastructure and vehicles cooperate to perform the different driving tasks, may prevail in enabling automated driving. This paper conducts an economic analysis of vehicle infrastructure cooperation for automated driving. In doing so, we present a model that captures investment decisions in vehicle automation and infrastructure digitalization and their effect on travelers’ purchase and travel decisions. Our analysis shows that, under certain conditions, equipping both infrastructure and vehicles is socially optimal. However, by analyzing strategic interactions between infrastructure support service providers and automakers, we show that lack of coordination between these two actors results in suboptimal investment in vehicle automation and infrastructure digitalization. Especially, when these two technologies are complementary, service providers are reluctant to invest in digital infrastructure and vehicle manufacturers tend to over equip their vehicles so as to avoid relying on infrastructure technology. Thus, we conclude by showing that better coordination between automakers and service providers – under the form of profit sharing – is welfare-improving and could potentially yield the socially optimal levels of automation and digitalization.
KW - Automated vehicles
KW - Digitalization
KW - Driving automation
KW - Infrastructure
KW - Vehicle-infrastructure cooperation
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U2 - 10.1016/j.trc.2022.103757
DO - 10.1016/j.trc.2022.103757
M3 - Article
AN - SCOPUS:85132876320
SN - 0968-090X
VL - 142
JO - Transportation Research Part C: Emerging Technologies
JF - Transportation Research Part C: Emerging Technologies
M1 - 103757
ER -