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To relieve worsening traffic congestion and protect the deteriorating environment, many cities in China start to operate rail transit lines. However, the expected modal shift will only occur if the rail transit system offers great advantages over road transport modes. To this end, designing efficient operational arrangement has far-reaching impacts not only on rail transit itself, but also on the...
This paper analyzes how to build an optimal pricing function for metro in a competitive urban public transport system. A modified multinomial logit model is introduced for estimating aggregate own-price elasticity of demand. Then, by substituting this price elasticity into a standard Ramsey pricing function, Metro's public benefits are maximized, subject to a breakeven constraint on the metro company's...
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