SIMULATION ANALYSIS ON CONTRACTS FOR MAINTAINING BUS TRIGGER SYSTEM

Abstract

 Bus trigger system seems to be one of effective measures to activate the local public transport systems. According to a trigger contract concluded between Kanazawa University and Hokuriku Rail Road Co., Ltd, Kanazawa bus trigger service has been offered and become successful. It is possible to regard this contract as a long-range game whether the both players decide to continue or cancel. The aim of this research is to examine the differences between their optimal and actual strategies for the Kanazawa bus trigger contract using a kind of simulation technique in accordance with the repeated game process, and to propose the appropriate fare level and target balance between income and expenditure in order to maintain the bus trigger system.