IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v39y2005i6p519-544.html
   My bibliography  Save this article

The generalized Nash equilibrium model for oligopolistic transit market with elastic demand

Author

Listed:
  • Zhou, Jing
  • Lam, William H.K.
  • Heydecker, Benjamin G.

Abstract

This paper presents a bilevel transit fare equilibrium model for a deregulated transit system. In the upper-level problem, the transit competition is portrayed as an n-player, non-cooperative game by changing the fare structure of each of a set of transit lines separately so as to maximize the profit of each transit operator within the oligopolistic market. We show that there exists a generalized Nash game between transit operators, which can be formulated as a quasi-variational inequality problem. In the lower-level problem, the passengers' response to the equilibrium fare structure of the transit operators is represented by the stochastic user equilibrium transit assignment model with elastic OD demand. As a result, the bilevel transit fare equilibrium problem is presented in the Stackelberg form and solved by a heuristic solution algorithm based on a sensitivity analysis approach. A numerical example is given to illustrate the competition mechanism on the transit network and some useful findings are presented on competitive operations.

Suggested Citation

  • Zhou, Jing & Lam, William H.K. & Heydecker, Benjamin G., 2005. "The generalized Nash equilibrium model for oligopolistic transit market with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 39(6), pages 519-544, July.
    • Handle: RePEc:eee:transb:v:39:y:2005:i:6:p:519-544
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0191-2615(04)00101-8
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jia Hao Wu & Michael Florian & Patrice Marcotte, 1994. "Transit Equilibrium Assignment: A Model and Solution Algorithms," Transportation Science, INFORMS, vol. 28(3), pages 193-203, August.
    2. Evans, A., 1990. "Competition And The Structure Of Local Bus Market," Papers 90-17, Flinders of South Australia - Discipline of Economics.
    3. Zubieta, Lourdes, 1998. "A network equilibrium model for oligopolistic competition in city bus services," Transportation Research Part B: Methodological, Elsevier, vol. 32(6), pages 413-422, August.
    4. Bell, Michael G. H., 1995. "Stochastic user equilibrium assignment in networks with queues," Transportation Research Part B: Methodological, Elsevier, vol. 29(2), pages 125-137, April.
    5. Nguyen, S. & Pallottino, S., 1988. "Equilibrium traffic assignment for large scale transit networks," European Journal of Operational Research, Elsevier, vol. 37(2), pages 176-186, November.
    6. Larsson, Torbjörn & Patriksson, Michael, 1999. "Side constrained traffic equilibrium models-- analysis, computation and applications," Transportation Research Part B: Methodological, Elsevier, vol. 33(4), pages 233-264, May.
    7. Roger L. Tobin & Terry L. Friesz, 1988. "Sensitivity Analysis for Equilibrium Network Flow," Transportation Science, INFORMS, vol. 22(4), pages 242-250, November.
    8. D. Chan & J. S. Pang, 1982. "The Generalized Quasi-Variational Inequality Problem," Mathematics of Operations Research, INFORMS, vol. 7(2), pages 211-222, May.
    9. Lam, William H. K. & Zhou, Jing & Sheng, Zhao-han, 2002. "A capacity restraint transit assignment with elastic line frequency," Transportation Research Part B: Methodological, Elsevier, vol. 36(10), pages 919-938, December.
    10. Patrick T. Harker, 1988. "Private Market Participation in Urban Mass Transportation: Application of Computable Equilibrium Models of Network Competition," Transportation Science, INFORMS, vol. 22(2), pages 96-111, May.
    11. Harker, Patrick T., 1991. "Generalized Nash games and quasi-variational inequalities," European Journal of Operational Research, Elsevier, vol. 54(1), pages 81-94, September.
    12. Enrique Fernandez & Patrice Marcotte, 1992. "Operators-Users Equilibrium Model in a Partially Regulated Transit System," Transportation Science, INFORMS, vol. 26(2), pages 93-105, May.
    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. Zhi-Chun Li & William Lam & S. Wong, 2012. "Optimization of Number of Operators and Allocation of New Lines in an Oligopolistic Transit Market," Networks and Spatial Economics, Springer, vol. 12(1), pages 1-20, March.
    2. Zubieta, Lourdes, 1998. "A network equilibrium model for oligopolistic competition in city bus services," Transportation Research Part B: Methodological, Elsevier, vol. 32(6), pages 413-422, August.
    3. Szeto, W.Y. & Jiang, Y., 2014. "Transit route and frequency design: Bi-level modeling and hybrid artificial bee colony algorithm approach," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 235-263.
    4. Zhi-Chun Li & William Lam & S. Wong, 2009. "The Optimal Transit Fare Structure under Different Market Regimes with Uncertainty in the Network," Networks and Spatial Economics, Springer, vol. 9(2), pages 191-216, June.
    5. Lu, Xiao-Yun & Gosling, Geoffrey D. & Ceder, Avi & Tung, Steven & Tso, Kristin & Shladover, Steven & Xiong, Jing & Yoon, Sangwon, 2009. "A Combined Quantitative and Qualitative Approach to Planning for Improved Intermodal Connectivity at California Airports," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt1r7227tt, Institute of Transportation Studies, UC Berkeley.
    6. Xu, Zhandong & Xie, Jun & Liu, Xiaobo & Nie, Yu (Marco), 2020. "Hyperpath-based algorithms for the transit equilibrium assignment problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    7. Liu, Qi & Chow, Joseph Y.J., 2022. "Efficient and stable data-sharing in a public transit oligopoly as a coopetitive game," Transportation Research Part B: Methodological, Elsevier, vol. 163(C), pages 64-87.
    8. Du, Muqing & Chen, Anthony, 2022. "Sensitivity analysis for transit equilibrium assignment and applications to uncertainty analysis," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 175-202.
    9. Jiang, Y. & Szeto, W.Y., 2016. "Reliability-based stochastic transit assignment: Formulations and capacity paradox," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 181-206.
    10. Ye, Jiao & Jiang, Yu & Chen, Jun & Liu, Zhiyuan & Guo, Renzhong, 2021. "Joint optimisation of transfer location and capacity for a capacitated multimodal transport network with elastic demand: a bi-level programming model and paradoxes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    11. Chavis, Celeste & Daganzo, Carlos F., 2013. "Analyzing the structure of informal transit: The evening commute problem," Research in Transportation Economics, Elsevier, vol. 39(1), pages 277-284.
    12. Diana P. Moreno-Palacio & Carlos A. Gonzalez-Calderon & John Jairo Posada-Henao & Hector Lopez-Ospina & Jhan Kevin Gil-Marin, 2022. "Entropy-Based Transit Tour Synthesis Using Fuzzy Logic," Sustainability, MDPI, vol. 14(21), pages 1-25, November.
    13. Li, Guoyuan & Chen, Anthony, 2023. "Strategy-based transit stochastic user equilibrium model with capacity and number-of-transfers constraints," European Journal of Operational Research, Elsevier, vol. 305(1), pages 164-183.
    14. Kenetsu Uchida & Agachai Sumalee & David Watling & Richard Connors, 2007. "A Study on Network Design Problems for Multi-modal Networks by Probit-based Stochastic User Equilibrium," Networks and Spatial Economics, Springer, vol. 7(3), pages 213-240, September.
    15. Lam, William H. K. & Zhou, Jing & Sheng, Zhao-han, 2002. "A capacity restraint transit assignment with elastic line frequency," Transportation Research Part B: Methodological, Elsevier, vol. 36(10), pages 919-938, December.
    16. Takebayashi, Mikio, 2013. "Network competition and the difference in operating cost: Model analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 85-94.
    17. Preston, John, 2008. "Competition in transit markets," Research in Transportation Economics, Elsevier, vol. 23(1), pages 75-84, January.
    18. Miller-Hooks, Elise & Mahmassani, Hani, 2003. "Path comparisons for a priori and time-adaptive decisions in stochastic, time-varying networks," European Journal of Operational Research, Elsevier, vol. 146(1), pages 67-82, April.
    19. Nair, Rahul & Miller-Hooks, Elise, 2014. "Equilibrium network design of shared-vehicle systems," European Journal of Operational Research, Elsevier, vol. 235(1), pages 47-61.
    20. Roberto Cominetti & José Correa, 2001. "Common-Lines and Passenger Assignment in Congested Transit Networks," Transportation Science, INFORMS, vol. 35(3), pages 250-267, August.

    More about this item

    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:eee:transb:v:39:y:2005:i:6:p:519-544. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description .

    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.