The welfare effects of nationalization in a mixed duopoly public transport market

Authors

Feifei Qin, Soochow UniversityFollow
Xiaoning Zhang, Tongji UniversityFollow
Eoin Plant, Technological University DublinFollow

Document Type

Article

Rights

Available under a Creative Commons Attribution Non-Commercial Share Alike 4.0 International Licence

Disciplines

Transport engineering, 5.2 ECONOMICS AND BUSINESS, public administration, Transport planning and social aspects of transport

Publication Details

Operational Research; An International Journal, First Online 22nd. March 2016.

http://link.springer.com/journal/12351

Abstract

Recently, many cities have launched new rail transit lines. Once these new rail transit lines start commercial operation, they will play important roles as competitors to conventional bus services. In this paper, the effects of nationalization on equilibria have been studied in a mixed duopoly public transport market, in which one publicly-owned rail transit operator competes with one private bus operator. Two numerical case studies show the nationalization of a rail transit company is always socially desirable both in Bertrand pricing game in the short run and in Nash non-cooperative game in the long run.

Recommended Citation

Qin, F., Zhang, X. and Plant, E. (2016) The welfare effects of nationalization in a mixed duopoly public transport market. Operational Research Online 22nd. March 2016.