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| Home » Carbon management » Demand Responsive Transit Exchange |
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Demand Responsive Transit Exchange |
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Demand Responsive Transit Exchange (DRTE) has been introduced in order to bring about a measure of liquidity in the transit market. This model was conceived by a reputed company called Crane Dragon.
This model has been introduced in order to use the principles and practices of the capital market and use them in transit so as to make transportation system in cities much more reliable than it currently is.
A company called Crane Dragon invented the Demand Responsive Transit Exchange in order to bring in risk management and parity in transit. They believed that any two unknown people traveling from one place to another everyday at the same time are related to one another, as far as their transit behavior is concerned. In order to explain this relation, which would assist in risk management, this postulate was developed.
This DRTE will bring about innovations in financial instruments that will surely flourish. This model is a part of the Texxi Model. Transit exchange will enable taxi drivers to determine the amount of income they can earn over the next 1 year. On the other hand, customers can buy certain numbers of trips well in advance and thus reduce risks associated with fuel price rise.
Like bond or commodity markets, introduction of DRTE, will lessen risk in the Demand Responsive Transit market and will introduce a fair price that will enable buyers and sellers to do business in a more regulated manner.
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