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This study proposes and evaluates an efficient real-time taxi dispatching strategy that solves the linear assignment problem to find a globally optimal taxi-to-request assignment at each decision epoch. The authors compare the assignment-based strategy with two popular rule-based strategies. They evaluate dispatching strategies in detail in the city of Berlin and the neighboring region of Brandenburg using the microscopic large-scale MATSim simulator. The assignment-based strategy produced better results for both drivers (less idle driving) and passengers (less waiting). However, computing the assignments for thousands of taxis in a huge road network turned out to be computationally demanding. Certain adaptations pertaining to the cost matrix calculation were necessary to increase the computational efficiency and assure real-time responsiveness.
Maciejewski et al. (Fri,) studied this question.