Price competition between intercity railway and bus

Author

Jia, Wang ; Xinmiao, Yang

Author_Institution

Dept. of Civil Eng., Tsinghua Univ., Beijing, China

Volume

5

fYear

2011

fDate

13-15 May 2011

Firstpage

113

Lastpage

116

Abstract

Ticket price is the key factor in the competition between intercity railway and bus. The relationship between intercity transit demand is set up according to the ticket prices. Logit model is used to establish the mode split in intercity transit system. Then the profit functions of both companies are presented. Based on the profit functions, a price game model is prop0sed to discuss the competition between intercity railway and bus. The existence and computing method of the Nash equilibrium price solutions are proposed. The conclusions of this research are useful to managers for their operations with intercity public transit system.

Keywords

game theory; pricing; railways; transportation; Nash equilibrium price solution; computing method; intercity bus; intercity public transit system; intercity railway; intercity transit demand; mode split; price competition; price game model; profit function; ticket price logit model; Companies; Games; Mathematical model; Modeling; Nash equilibrium; Rail transportation; Nash equilibrium; bus; intercity railway; price game;

fLanguage

English

Publisher

ieee

Conference_Titel

Business Management and Electronic Information (BMEI), 2011 International Conference on

Conference_Location

Guangzhou

Print_ISBN

978-1-61284-108-3

Type

conf

DOI

10.1109/ICBMEI.2011.5914440

Filename

5914440