The welfare effects of nationalization in a mixed duopoly public transport market

Qin, Feifei; Zhang, Xiaoning; Plant, Eoin

Abstract

Recently, many cities have launched new rail transit lines. Once these new rail transit lines start commercial operation, they will play important roles as competitors to conventional bus services. In this paper, the effects of nationalization on equilibria have been studied in a mixed duopoly public transport market, in which one publicly-owned rail transit operator competes with one private bus operator. Two numerical case studies show the nationalization of a rail transit company is always socially desirable both in Bertrand pricing game in the short run and in Nash non-cooperative game in the long run.

Citation

Qin, F., Zhang, X., & Plant, E. (2017). The welfare effects of nationalization in a mixed duopoly public transport market. Operational Research, An International Journal, 17(2), 593-618. https://doi.org/10.1007/s12351-016-0241-1

• Journal Article Type: Article
• Acceptance Date: Mar 11, 2016
• Online Publication Date: Mar 22, 2016
• Publication Date: 2017-07
• Deposit Date: Nov 6, 2019
• Publicly Available Date: Nov 19, 2019
• Journal: Operational Research
• Print ISSN: 1109-2858
• Electronic ISSN: 1866-1505
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 17
• Issue: 2
• Pages: 593-618
• DOI: https://doi.org/10.1007/s12351-016-0241-1
• Keywords: Management of Technology and Innovation; Management Science and Operations Research; Strategy and Management; Statistics, Probability and Uncertainty; Modelling and Simulation; Computational Theory and Mathematics; Numerical Analysis
• Public URL: http://researchrepository.napier.ac.uk/Output/2293989