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Bus drivers in competition: A directed location approach

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  • Herrera, Fernanda
  • López, Sergio I.

Abstract

We present a directed variant of Salop’s (1979) model to analyze bus transport dynamics. Players are drivers competing in both cooperative and non-cooperative games. Utility 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 competitive system with a more cooperative one.

Suggested Citation

  • Herrera, Fernanda & López, Sergio I., 2022. "Bus drivers in competition: A directed location approach," Research in Transportation Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:retrec:v:95:y:2022:i:c:s0739885922000415
    DOI: 10.1016/j.retrec.2022.101220
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    References listed on IDEAS

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