IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2101.01155.html
   My bibliography  Save this paper

Bus operators in competition: a directed location approach

Author

Listed:
  • Fernanda Herrera
  • Sergio I. L'opez

Abstract

We present a directed variant of Salop (1979) model to analyze bus transport dynamics. The players are operators competing in cooperative and non-cooperative games. Utility, like in most bus concession schemes in emerging countries, is proportional to the total fare collection. Competition for picking up passengers leads to well documented and dangerous driving practices that cause road accidents, traffic congestion and pollution. We obtain theoretical results that support the existence and implementation of such practices, and give a qualitative description of how they come to occur. In addition, our results allow to compare the current or base transport system with a more cooperative one.

Suggested Citation

  • Fernanda Herrera & Sergio I. L'opez, 2021. "Bus operators in competition: a directed location approach," Papers 2101.01155, arXiv.org, revised Mar 2021.
    • Handle: RePEc:arx:papers:2101.01155
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2101.01155
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. G. F. Newell, 1971. "Dispatching Policies for a Transportation Route," Transportation Science, INFORMS, vol. 5(1), pages 91-105, February.
    2. Borenstein, Severin & Netz, Janet, 1999. "Why do all the flights leave at 8 am?: Competition and departure-time differentiation in airline markets," International Journal of Industrial Organization, Elsevier, vol. 17(5), pages 611-640, July.
    3. de Palma, André & Lindsey, Robin, 2001. "Optimal timetables for public transportation," Transportation Research Part B: Methodological, Elsevier, vol. 35(8), pages 789-813, September.
    4. Ellis, Christopher J. & Silva, Emilson C. D., 1998. "British Bus Deregulation: Competition and Demand Coordination," Journal of Urban Economics, Elsevier, vol. 43(3), pages 336-361, May.
    5. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    6. Ibarra-Rojas, O.J. & Delgado, F. & Giesen, R. & Muñoz, J.C., 2015. "Planning, operation, and control of bus transport systems: A literature review," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 38-75.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herrera, Fernanda & López, Sergio I., 2022. "Bus drivers in competition: A directed location approach," Research in Transportation Economics, Elsevier, vol. 95(C).
    2. de Palma, André & Lindsey, Robin, 2001. "Optimal timetables for public transportation," Transportation Research Part B: Methodological, Elsevier, vol. 35(8), pages 789-813, September.
    3. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    4. Givoni, Moshe & Rietveld, Piet, 2009. "Airline's choice of aircraft size - Explanations and implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 500-510, June.
    5. Meilin Ma & Ralph Siebert, 2021. "The Impact of Private Label Introduction on Assortment, Prices, and Profits of Retailers," CESifo Working Paper Series 9380, CESifo.
    6. Kuangnen Cheng & Hui-Ping Chen & Jason Lee, 2015. "Competition behavior in service frequency for U.S. airlines," Service Business, Springer;Pan-Pacific Business Association, vol. 9(1), pages 1-16, March.
    7. Dakic, Igor & Yang, Kaidi & Menendez, Monica & Chow, Joseph Y.J., 2021. "On the design of an optimal flexible bus dispatching system with modular bus units: Using the three-dimensional macroscopic fundamental diagram," Transportation Research Part B: Methodological, Elsevier, vol. 148(C), pages 38-59.
    8. Manser, Patrick & Becker, Henrik & Hörl, Sebastian & Axhausen, Kay W., 2020. "Designing a large-scale public transport network using agent-based microsimulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 1-15.
    9. Fageda, Xavier & Sansano, Sergi, 2018. "Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 266-276.
    10. Gu, Weihua & Amini, Zahra & Cassidy, Michael J., 2016. "Exploring alternative service schemes for busy transit corridors," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 126-145.
    11. Guihaire, Valérie & Hao, Jin-Kao, 2008. "Transit network design and scheduling: A global review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(10), pages 1251-1273, December.
    12. Brueckner, Jan K. & Luo, Dan, 2014. "Measuring strategic firm interaction in product-quality choices: The case of airline flight frequency," Economics of Transportation, Elsevier, vol. 3(1), pages 102-115.
    13. David Schmaranzer & Roland Braune & Karl F. Doerner, 2021. "Multi-objective simulation optimization for complex urban mass rapid transit systems," Annals of Operations Research, Springer, vol. 305(1), pages 449-486, October.
    14. Kuo, Yong-Hong & Leung, Janny M.Y. & Yan, Yimo, 2023. "Public transport for smart cities: Recent innovations and future challenges," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1001-1026.
    15. Ibarra-Rojas, O.J. & Delgado, F. & Giesen, R. & Muñoz, J.C., 2015. "Planning, operation, and control of bus transport systems: A literature review," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 38-75.
    16. Guo, Xin & Sun, Huijun & Wu, Jianjun & Jin, Jiangang & Zhou, Jin & Gao, Ziyou, 2017. "Multiperiod-based timetable optimization for metro transit networks," Transportation Research Part B: Methodological, Elsevier, vol. 96(C), pages 46-67.
    17. Wu, Liyu & Gu, Weihua & Fan, Wenbo & Cassidy, Michael J., 2020. "Optimal design of transit networks fed by shared bikes," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 63-83.
    18. David Schmaranzer & Roland Braune & Karl F. Doerner, 2020. "Population-based simulation optimization for urban mass rapid transit networks," Flexible Services and Manufacturing Journal, Springer, vol. 32(4), pages 767-805, December.
    19. Vermeulen, Ben & La Poutré, Han & de Kok, Ton, 2012. "Dynamics and equilibria under incremental horizontal differentiation on the Salop circle," MPRA Paper 51449, University Library of Munich, Germany.
    20. Moshe Givoni & Piet Rietveld, 2006. "Choice of Aircraft Size - Explanations and Implications," Tinbergen Institute Discussion Papers 06-113/3, Tinbergen Institute.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2101.01155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.