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A network equilibrium model for oligopolistic competition in city bus services

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  • Zubieta, Lourdes

Abstract

This paper presents a new model for a deregulated transportation system with full representation of the city network. We assume the case in which a few private bus companies provide the totality of the urban transportation services. Each private company is assumed to have exclusive rights to operate a particular transit line. Competition among companies is given only in terms of the frequency of service as demand and transit fares are considered exogenous. The bus operators seek profit maximization whereas passengers look for the travel strategy that minimizes expected travel time. At equilibrium, marginal revenue should equal marginal cost for each operating company and, for each origin-destination pair, travel 'strategies' for passengers should be optimal. To obtain an equilibrium solution, a heuristic procedure is outlined and tested on a small network.

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  • Zubieta, Lourdes, 1998. "A network equilibrium model for oligopolistic competition in city bus services," Transportation Research Part B: Methodological, Elsevier, vol. 32(6), pages 413-422, August.
    • Handle: RePEc:eee:transb:v:32:y:1998:i:6:p:413-422
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    2. Chavis, Celeste & Daganzo, Carlos F., 2013. "Analyzing the structure of informal transit: The evening commute problem," Research in Transportation Economics, Elsevier, vol. 39(1), pages 277-284.
    3. Wichiensin, Muanmas & Bell, Michael G.H. & Yang, Hai, 2007. "Impact of congestion charging on the transit market: An inter-modal equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 703-713, August.
    4. Preston, John, 2008. "Competition in transit markets," Research in Transportation Economics, Elsevier, vol. 23(1), pages 75-84, January.
    5. Liu, Qi & Chow, Joseph Y.J., 2022. "Efficient and stable data-sharing in a public transit oligopoly as a coopetitive game," Transportation Research Part B: Methodological, Elsevier, vol. 163(C), pages 64-87.
    6. Chang, Hui & Xu, Xiu-Lian & Hu, Chin-Kun & Fu, Chunhua & Feng, Ai-xia & He, Da-Ren, 2014. "A manipulator game model of urban public traffic network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 416(C), pages 378-385.
    7. Hernández, Daniel & Muñoz, Juan Carlos & Giesen, Ricardo & Delgado, Felipe, 2015. "Analysis of real-time control strategies in a corridor with multiple bus services," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 83-105.
    8. Szeto, W.Y. & Jiang, Y., 2014. "Transit route and frequency design: Bi-level modeling and hybrid artificial bee colony algorithm approach," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 235-263.
    9. Zhou, Jing & Lam, William H.K. & Heydecker, Benjamin G., 2005. "The generalized Nash equilibrium model for oligopolistic transit market with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 39(6), pages 519-544, July.
    10. Lu, Xiao-Yun & Gosling, Geoffrey D. & Ceder, Avi & Tung, Steven & Tso, Kristin & Shladover, Steven & Xiong, Jing & Yoon, Sangwon, 2009. "A Combined Quantitative and Qualitative Approach to Planning for Improved Intermodal Connectivity at California Airports," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt1r7227tt, Institute of Transportation Studies, UC Berkeley.
    11. Dröes, Martijn I. & Rietveld, Piet, 2015. "Rail-based public transport and urban spatial structure: The interplay between network design, congestion and urban form," Transportation Research Part B: Methodological, Elsevier, vol. 81(P2), pages 421-439.
    12. Matsubayashi, Nobuo & Umezawa, Masashi & Masuda, Yasushi & Nishino, Hisakazu, 2002. "Merger effect of two firms under network equilibrium," European Journal of Operational Research, Elsevier, vol. 137(2), pages 434-447, March.
    13. Shiqian Ji & Jiaming Zhong & Zhaocheng He, 2022. "A Bus Subsidy Scheme Design Model Considering Competition between Bus Companies," Sustainability, MDPI, vol. 14(7), pages 1-19, April.

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