Competition between high-speed and conventional rail systems: A game theoretical approach

Hsu, Chiung‐Wen; Lee, Yusin; Liao, Chun-Hsiung

doi:10.1016/j.eswa.2009.09.066

Cited by 60 publications

(19 citation statements)

References 40 publications

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“…Whereas in Paris HSR is considered one of the reasons for tourists to visit the city, this does not happen neither in Madrid nor in Rome (23,24). Competition between HSR and conventional trains has been also analyzed for the case of Taiwan, where the pricing strategy is a determinant factor to the profit and welfare (25).…”

Section: Literature Reviewmentioning

confidence: 99%

Price Elasticity of Demand on the High-Speed Rail Lines of Spain: Impact of the New Pricing Scheme

Hortelano

Guzmán

Preston

et al. 2016

Transportation Research Record: Journal of the Transportation R

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Reduced travel time, regional cohesion, economic development, and environmental benefits were some of the reasons given to develop a high-speed rail (HSR) network in Spain. Since the first high-speed line in Spain opened in 1992, HSR has been a part of the travel experience, despite recent concerns raised about the lack of demand and low occupancy rates of HSR trains compared with those in other countries. In February 2013, Renfe Operadora, Spain’s state-owned transport company, implemented a new pricing scheme, which reduced ticket prices by at least 11% and introduced flexibility in their purchase. In this research, the effects of the new scheme were analyzed, and the impact on the shift in transport modes was substantiated through consideration of a discrete choice model. As a consequence of this policy, occupancy rates were increased hugely. Although apparently ticket price was not regarded by users as the main reason to travel by HSR, the price elasticity of demand turned out to be high. Given the transport modes that competed with HSR, the effects were quite different. For short routes connecting small- and medium-sized cities with big metropolitan areas, growth in demand was achieved at the expense of the car and the bus, whereas for long routes connecting large cities in which air transport was available, the growth occurred mainly at the expense of air transportation, and induced demand also was triggered. Finally, when the owner of the infrastructure and the train operating companies were managed by the government, the rail infrastructure fee policy set may have prompted unfair competition with other transport modes.

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Section: Literature Reviewmentioning

confidence: 99%

Price Elasticity of Demand on the High-Speed Rail Lines of Spain: Impact of the New Pricing Scheme

Hortelano

Guzmán

Preston

et al. 2016

Transportation Research Record: Journal of the Transportation R

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“…1. Having the vector (11) taking into account (8), one can calculate the mathematical expectation of the payoffs of each of the players «i» (6) for formula (15) are calculated according to the following formulas: .…”

Section: Methodsmentioning

confidence: 99%

A Model of Transit Freight Distribution on a Railway Network

Козаченко¹,

Скалозуб²,

Gera³

et al. 2019

Transport Problems

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The peculiarity of the transit freight transportation by rail in international traffic is the fact that while performing transportation, the railway administrations are in competition among themselves. At the same time, the routes of cargo traffic volumes significantly depend on the conditions of transportation by railways of individual states. The mathematical model for the distribution of transit freight traffic volumes on the railway network, based on the methods of graph theory and game theory, was proposed in this article. The developed model enables the evaluation of the possibilities of attracting transit freight traffic volumes by individual railway administrations by changing the tariff value and transportation conditions. 110

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“…Game theory was first applied to China's transportation problems by Li et al [40], establishing a game model based on the global transportation problem. Hsu et al [41] developed Taiwan HSR fare optimization strategies by solving the Nash equilibrium model. Many studies were also committed to using a variety of methods to study the competitive relationship between HSR and airline, for example, Logit model [42], analytic hierarchy process [43], and information entropy theory [44].…”

Section: Introductionmentioning

confidence: 99%

Competition between High‐Speed Rail and Airline Based on Game Theory

Jiang

Zhang

et al. 2017

Mathematical Problems in Engineering

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The coexistence of high-speed rail (HSR) and airline in a busy transportation corridor generates competition between the two transportation modes. An unfair competition between HSR and airline not only reduces both revenues, but also triggers a series of social problems. Based on generalized costs, this paper proposes combining an improved gray prediction model, modified gravity model, and Logit model to predict the average passenger flow, induced passenger flow, and transfer passenger flow. According to the predicted results, we establish a game model that considers different stages of the HSR development. For demonstrative purposes, the approach is applied to an empirical study in China, that is, the competition between Beijing-Shenyang HSR and airline. Malignant fare war will make both parties lose out. Either mode that improves service quality will generate more revenue. If both parties improve the level of service, all incomes of the HSR, airline, and community increase. Results show the HSR contribution is greater than the airline in the case study.

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Competition between high-speed and conventional rail systems: A game theoretical approach

Cited by 60 publications

References 40 publications

Price Elasticity of Demand on the High-Speed Rail Lines of Spain: Impact of the New Pricing Scheme

Price Elasticity of Demand on the High-Speed Rail Lines of Spain: Impact of the New Pricing Scheme

A Model of Transit Freight Distribution on a Railway Network

Competition between High‐Speed Rail and Airline Based on Game Theory

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