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<abstract> <p>Most existing public transit systems have a fixed dispatching and service mode, which cannot effectively allocate resources from the perspective of the interests of all participants, resulting in resource waste and dissatisfaction. Low passenger satisfaction leads to a considerable loss of bus passengers and further reduces the income of bus operators. This study develops an optimization model for bus schedules that considers vehicle types and offers two service levels based on heterogeneous passenger demands. In this process, passenger satisfaction, bus company income, and government subsidies are considered. A bilevel model is proposed with a lower-level passenger ride simulation model and an upper-level multiobjective optimization model to maximize the interests of bus companies, passengers, and the government. To verify the effectiveness of the proposed methodology, a real-world case from Guangzhou is presented and analyzed using the nondominated sorting genetic algorithm-Ⅱ (NSGA-Ⅱ), and the related Pareto front is obtained. The results show that the proposed bus operation system can effectively increase the benefits for bus companies, passengers, and the government.</p> </abstract>

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