Just as in financial world there are stock exchanges, Commodities Exchanges and Bond Exchanges, there also now exists a Demand Responsive Transit Exchange.
A DRT Exchange exists to provide a measure of liquidity in the transit markets, which will better serve all participants.
A Demand Responsive Transit Market is a system for effecting the purchase and sale of transit fulfillment using supply and demand to eventually set the price. Wholesale transactions in transit can then be cleared and settled by the Demand Responsive Transit Exchange Operator or a special-purpose independent entity charged exclusively with that function.
Much in the same way as the electricity market became deregulated and allowed for innovation in financial instruments, a full feldged DRT Exchange will allow many new innovations to flourish.
History of the Demand Responsive Transit Exchange
The concept of the DRT Exchange was first coined by technology thinktank Crane Dragon, after having noticed that mathematical models for Credit Contagion also similaly described the event where 2 people who do not know each other travel to and from the same general localities at around the same time each day. They are closely correlated in their transit behaviour but do not know it. Much in the same way as when a large company files for bankruptcy, there are many other companies who will be adversely affected even if on the surface they seem to be unrelated. A matrix to represent these correlations would assist greatly in risk management.