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Trans. Planning Journal
| Title | Applying Game Theory on Strategic Planning of Freeway Buses in Competing with High Speed Rail |
|---|---|
| Author | Feng-Yeu Shyr and Cheng-Hong Shieh |
| Summary | Taiwan High Speed Rail (THSR), a new competitor that offers fast, reliable, and frequent services, has had a great impact on the transportation market of Taiwan’s western corridor. To evaluate the impacts on freeway buses and other competitors and to assess the possibility of cooperation among freeway buses, we formulate profit functions of these carriers as a tool to study various before-and-after scenarios resulting from THSR operations. Next, we apply the non-cooperative game approach to analyze the interaction among THSR, freeway buses, and other modes of transportation along the corridor, and we employ cooperative game to resolve the cooperative strategies among freeway bus companies. Through the construction of the payoff functions and the solutions of market equilibrium, we find the optimal pricing strategies for freeway buses under various cooperative scenarios and compute the Shapley values which provide the guidance of profit-sharing in the cooperative game. Moreover, the necessity of all-in-one coalition is justified by the improvement of social welfare. In the case study, data collected from Taipei-Taichung market are used for model empirical analysis. |
| Vol. | 38 |
| No. | 1 |
| Page | 69 |
| Year | 2009 |
| Month | 4 |
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