Abstract
Recently, the number of passenger of public bus services in Japan tends to decrease due to the motorization. This condition leads to a severe management situation, including in Kumamoto City. Since 1984, the deficit of bus companies operation in provision of bus services in Kumamoto has been covered by Kumamoto City Government on the basis of lines subsidy, and the city allocated a number of subsidy of about 200 million yen in 2007. Currently, The Kumamoto city government plans to reduce the amount of subsidy to bus companies by introducing the giving of incentive to bus companies in order to trim bus company deficit. This study aims to construct the mathematical model of the incentive reward and apply the model to realignment of buses lines networks in Kumamoto Metropolitan Area.
