Title :
Optimizing Pricing Function for Metro in a Competitive Public Transport System
Author :
Qin, Feifei ; Jia, Haicheng
Author_Institution :
Molde Univ. Coll., Molde
Abstract :
This paper analyzes how to build an optimal pricing function for metro in a competitive urban public transport system. A modified multinomial logit model is introduced for estimating aggregate own-price elasticity of demand. Then, by substituting this price elasticity into a standard Ramsey pricing function, Metro´s public benefits are maximized, subject to a breakeven constraint on the metro company´s revenue.
Keywords :
optimisation; pricing; transportation; Ramsey pricing function; aggregate own-price elasticity of demand; competitive urban public transport system; metro system; multinomial logit model; pricing function optimization; Aggregates; Context modeling; Cost function; Economic forecasting; Educational institutions; Elasticity; Environmental economics; Logistics; Pricing; Transportation; Optimizing; Ramsey pricing; aggregate own-price elasticity of demand;
Conference_Titel :
Automation and Logistics, 2007 IEEE International Conference on
Conference_Location :
Jinan
Print_ISBN :
978-1-4244-1531-1
DOI :
10.1109/ICAL.2007.4338749
