OPTIMAL NETWORK STRUCTURE OF INTERCITY PASSENGER TRANSPORTATION CONSIDERING COST SHARING SCHEMES

Abstract

Intercity passenger transportation, services with different speeds and basic costs are supplied for each link with considerable fixed cost, and passengers between each OD move by combining the link-based service appropriately. Total cost to construct and maintain link service in the network is shared by fare paid by the passengers. In this case, it is possible that the total number of users can be increased if a larger part of the cost is shared by the OD pair passengers relatively less elastic, instead of a simple method according to the distance for the fixed cost of the service. In this study, we propose a model that determines the network structure and fare of OD, under one of the several cost sharing schemes. In this model, we maximize the social surplus, that is total consumer surplus minus tax amount of government. Next, this model is applied to a virtual network, and the optimal network structure under different cost-sharing schemes and different demand size are analyzed.