Pricing model of train passenger transport based on the value of travel time and Bi-level programming

Abstract

An approach to a method of Bi-level programming and value of travel time is used to study the strategies of passenger transport pricing. The Bi-level programming approaches and the value of travel time have been used to study several of transportation problems, but few studies have included both of them. In this research with dividing passengers into some groups of different income levels, a variable of comfort levels is introduced to calculate the generalized value of travel time. A pricing model which is based on the value of travel time and Bi-level programming is put forward to maximize the benefit of the railway agencies and the passengers' utility, which considers the passenger's mode choice behavior with different income levels. The study results show that the model is appropriate for problems of passenger transport pricing. The relative optimal result based on the value of travel time and Bi-level programming has been proved correctly through studying an example of the Beijing-Shanghai high speed railway passenger ticket pricing. The pricing model would support the passenger ticket pricing of high speed railway.