Differential Pricing Research Articles

Towards achieving a haemophilia-free mind.

Towards achieving a haemophilia-free mind.

Differentially Private Demand Side Management for Incentivized Dynamic Pricing in Smart Grid

In order to efficiently provide demand side management (DSM) in smart grid, carrying out pricing on the basis of real-time energy usage is considered to be the most vital tool because it is directly linked with the finances associated with smart meters. Hence, every smart meter user wants to pay minimum possible amount along with getting maximum benefits. In here, usage based dynamic DSM pricing strategies plays their role and provide users with specific incentives. However, these reported real-time values can leak privacy of smart meter users, which can cause serious consequences such as spying. Moreover, most of dynamic pricing algorithms charge all users equally irrespective of their contribution in causing peak factor. Therefore, this paper proposes a modified usage based dynamic pricing mechanism that only charges the users responsible for causing peak factor. We further integrate differential privacy to protect the privacy of real-time smart metering data, and to calculate accurate billing we propose a noise adjustment method. Finally, we propose Demand Response enhancing Differential Pricing (DRDP) strategy that effectively enhances demand response along with providing dynamic pricing to smart meter users. The performance evaluation shows that DRDP outperforms previous mechanisms in terms of dynamic pricing and privacy preservation.

Sourcing diversification: Strategy selection, sourcing allocation and brand power

The supply of power batteries is monopolised by a few suppliers, resulting in high purchasing costs for electric vehicle manufacturers (EVMs). Hence, some EVMs have implemented diversified sourcing strategies to seek purchase concessions and reduce their dependence on battery suppliers. Motivated by the sourcing strategies of EVMs, we develop a game-theoretic model to investigate the optimal procurement strategies of manufacturers with different brand power. The model consists of a primary supplier, an alternative supplier, and two competing manufacturers, wherein the focal manufacturer has the option of implementing dual sourcing or partial outsourcing through sourcing allocation, whereas the rival manufacturer only sources from the primary supplier. Specifically, we first study the focal manufacturer’s three procurement strategies under the primary supplier’s uniform pricing: single sourcing (the benchmark), dual sourcing and partial outsourcing. Then, we examine the primary supplier’s strategic response to the manufacturer’s sourcing diversification: maintaining uniform pricing or switching to differential pricing. By analysing the equilibrium profits, we find that compared with the situation under single sourcing, both the primary supplier and the focal manufacturer may obtain higher profits under dual sourcing or partial outsourcing. However, with an increase in the focal manufacturer’s order proportion, the primary supplier’s profit may decrease; and the focal manufacturer’s diversified sourcing strategy may hurt all the supply chain players. Furthermore, we show that when the primary supplier considers switching to differential pricing, the focal manufacturer tends to abandon the diversified sourcing and adopt single sourcing.

Data analysis of ethanol blended petrol programme of India

The ethanol blended petrol (EBP) programme of 2018 is a policy framework designed to pro- mote the availability of ethanol in the Indian market and to increase its blending percentage in petrol. The paper focuses on the features, current challenges and critically analyzes EBP 2018. It also compares EBP 2018 with the ethanol blending policies of leading nations and suggests remedial measures. EBP 2009 had proposed a 20% blending target for ethanol in petrol by 2017, while EBP 2018 has fixed a 10% ethanol blending target by 2022 and 20% by 2030. The ethanol blending target could not be achieved till now and the current blending rate stood at 2%. Taxes and inter-state controls on the trading and transportation of molasses and non-potable ethanol by various states in India coupled with their set aside allotment continue to derail the implementation of the EBP programme. EBP 2018 proposed differential pricing and incentives for 2G ethanol versus 1G ethanol which is regressive. The paper also analyses whether the ethanol blending and other policy measures had the desired impact on realization of EBP goals and on socio-economic development.

Serum: differential pricing of the Covid-19 vaccine

Learning outcomes The learning outcomes of this study are as follows: 1. the benefits of differential pricing over uniform pricing; 2. the differences between second- and third-degree price discrimination; 3. the rationale for charging different prices for segments having different willingness to pay; and 4. how different prices for the same product can lead to perceptions of unfairness and how companies might manage such an issue. Case overview/synopsis This case outlines the decisions that Adar Poonawalla, the CEO of Serum Institute of India (Serum), had to make in late April 2021 concerning its pricing for the COVID-19 (Covid) vaccine. Serum was the world’s largest manufacturer of vaccines, and its Covishield vaccine had received regulatory approval, but faced an unusual challenge and opportunity. In most countries, governments had procured Covid vaccines from manufacturers and then delivered the vaccines to consumers free of cost. But in India, there was a three-tier pricing system. While the Government of India had committed to free vaccines in government-run public hospitals, it also allowed vaccine makers to directly sell vaccines to state governments, as well as private hospitals, who were at liberty to charge consumers for the vaccines. This created an interesting pricing dilemma for Serum: as different customers had different willingness to pay, should Serum use differential pricing? Would such a tiered pricing system be considered fair? How many different price points should Serum maintain? By exploring these and related decisions that Poonawalla had to make, the case is intended to teach price discrimination. Complexity academic level The case is intended for graduate-level courses in marketing, pricing and economics. This case illustrates the principles of differential pricing/price discrimination. More specifically, it highlights pricing strategies motivated by second- and third-degree price discrimination in an emerging market’s health-care context. From the information in the case, the student can learn to apply the concepts of second- and third-degree price discrimination in marketing. After working through the case and assignment questions, instructors will be able to help students understand the following concepts: Teaching objective 1: the benefits of differential pricing over uniform pricing. Teaching objective 2: the differences between second- and third-degree price discrimination. Teaching objective 3: the rationale for charging different prices for segments having different willingness to pay. Teaching objective 4: how different prices for the same product can lead to perceptions of unfairness and how companies might manage such an issue. Supplementary material Teaching notes are available for educators only. Subject code CSS 8: Marketing

Differential license plate pricing and electric vehicle adoption in Shanghai, China

Electric vehicles (EVs) are the most direct pathway to reduce greenhouse gas emissions in the transportation sector. Regulators worldwide have announced ambitious targets for EV adoption to replace internal combustion engine vehicles (ICEVs). A program of direct financial subsidy is a dominant policy to encourage adoption. This paper investigates an alternative policy based on differential license plate pricing across vehicle types in Shanghai, China’s largest regional EV market. Using monthly vehicle registration data from Shanghai, we find that EV sales would increase by 56%–65% if the differential between ICEV and EV license plate costs rises by 1,000 yuan ($150). We compare differential license plate pricing with the purchase subsidy policy. With a fiscal-neutral policy scheme, differential license plate pricing is more effective for promoting EV adoption than direct purchase subsidies. We also discuss the implications of the ongoing policy change where the free license is no longer granted to plug–in hybrid electric vehicle (PHEV) buyers starting in 2023. We show that the new policy scheme could still be more effective than subsidies in encouraging battery electric vehicle (BEV) adoption. The new policy scheme, combined with relaxed price ceilings in the ICEV license auction market, will yield comparable or even larger adoption growth than the previous policy.

Groundwater pricing strategies for Indian cities - a case of Kanpur

ABSTRACT In the cities of the Indo-Gangetic basin, over the years, urban residents have been relying on groundwater due to its universal availability and reliability clubbed with inadequate municipal water supply. The study aims at using groundwater pricing as a tool for groundwater management in Indian cities giving due importance to the spatial dynamics of groundwater resources. It focuses on Kanpur city, where half the city depends directly on groundwater resources for meeting their requirements, making the aquifers susceptible to low yield and facing the risk of irreversible over-exploitation in the coming future. Spatial analysis using Geographical Information System (GIS) has been carried out for economic evaluation of the resource by assessing the criticality of groundwater resources. This is further incorporated into a differential pricing structure with an aim to curb over-exploitation. We have also proposed specific pricing strategies that are better suited and easily implementable in Kanpur city.

Decision and coordination of E-commerce closed-loop supply chains with fairness concern

The e-commerce market expands rapidly, and manufacturers sell remanufactured and new products online, making e-commerce closed-loop supply chains face product differential pricing and follower firms’ unfair psychology due to the large profit gap between system members. Therefore, we price differentially by considering consumers’ preference for remanufactured and new products and develop a centralized model and two decentralized models with or without fairness concern to explore its impact on decision-making. We show that consumers’ higher preference for the remanufactured product is conducive to the two products’ price and the remanufactured product’s sales, then the sensitivity analysis shows that the higher preference positively affects system operation. We next incorporate a relative fairness reference point into the manufacturer’s utility function and find the manufacturer’s fairness concern behaviour to punish the e-platform is detrimental to cultivating a remanufactured product consumer market and causes the loss of its profits to be greater than that of the e-platform’s profit. Additionally, a new contract of “dual-revenue and service-cost sharing” can effectively eliminate the efficiency loss of the two decentralized models. Our paper provides theoretical contributions to product pricing, the setting of a utility function with fairness concern, and the design of dual coordination mechanism.

Optimization of Differential Pricing and Seat Allocation in High-Speed Railways for Multi-Class Demands: A Chinese Case Study

There are many options for passengers choosing to travel by train. In order to maximize price revenue requests, railway companies must consider the differences between passenger types in the process of formulating ticket strategies. This study firstly subdivides passenger demand according to the latent class model based on Stated Preference (SP) and Revealed Preference (RP) survey data, then the passenger’s preference for train service attributes is identified. Based on the prospect theory, logit model and passenger flow transfer model, the final passenger flow assignment result is obtained. A differential pricing and seat allocation model aiming at maximizing price revenue is established, and a simulated annealing (SA) algorithm is designed to solve it. The results of the case show that the proposed model can increase revenue by 3.52% and by 1.02% compared with the result under single fares and without demand division.

RESIDENTIAL SPATIAL DIFFERENTIATION AT THE COMMUNITY LEVEL IN HANGZHOU, CHINA

Residential spatial differentiation is an important social issue for every large city to explore. The “subcultural” clusters formed by the subjective choices of a city’s residents divide the living spaces of the city and create residential differentiation. A study of this phenomenon would help to facilitate the allocation of urban resources and the formulation of relevant development strategies. In recent years, Hangzhou, one of the major developed cities in China, has seen a gradual increase in the proportion of its non-local population. Employing principal component analysis and K-means clustering, this study investigated the city’s spatial differentiation of living spaces at the community level and identified the social clustering areas. The Shannon-Wiener index and the index of dissimilarity were used to examine the degree of residential segregation in each administrative district. The results showed that the functional distinctions among the districts of Hangzhou were pronounced and had certain degrees of class solidification. A certain spatial coupling was observed between residential differentiation and housing prices. More reasonable allocations of social resources would help to ameliorate the negative effects caused by the spatial differentiation of living spaces.

Joint Optimization of Time-Dependent Line Planning and Differential Pricing with Passenger Train Choice in High-Speed Railway Networks

Line planning problems and differential pricing problems are complementary processes in the railway system, but these two problems were generally considered separate processes in most of the existing literature. This paper studies a time-dependent line planning problem and differential pricing problem with passenger train choice in high-speed railway networks under elastic origin-destination-period demand. After clearly and flexibly describing the organization cost of operators, the price cost, and the time cost of passengers in a physical infrastructure-based directed graph, a non-linear joint optimization model is designed with a diversity of optimization goals of maximizing the total revenue of railway operators minus the total travel cost of passengers. An algorithm based on a simulated annealing framework is designed to solve the joint optimization model, and six neighborhood search strategies are designed by combining the features of the studied problem and designed model closely to improve the efficiency of the solution search. The results based on both a toy railway network and a real-world railway network show that the optimized time-dependent line plan and differential price plan are beneficial to increasing the total revenue of railway operators and improving the travel service of railway passengers.

Blockchain-based traceability system adoption decision in the dual-channel perishable goods market under different pricing policies

The blockchain-based traceability system (BTS) can reduce product losses in the perishable goods market, which yields a loss-reduction effect, and offer authentic information, which triggers a premium effect. In a dual-channel perishable goods supply chain (DPGSC), including one supplier and retailer each, the supplier can operate the price of the direct channel, different or non-different from that of the traditional channel. To study the adoption of BTS in the supplier-led DPGSC, we employed a game-theoretical model to capture BTS adoption strategy under the differential and non-differential pricing policies and proposed an improved cost-sharing contract to boost the DPGSC performance. The results indicated that both the supplier and the retailer are willing to improve product quality, broaden the saleable region, and lower the production cost. The adoption of BTS mainly depends on the losses-reduction effect, premium effect, production cost, and tag cost, which is affected more by the premium effect than by the loss-reduction effect. Furthermore, their adoption is not always easier when the production cost is higher. Except for symmetric base demands, they benefit asynchronously from BTS. Synchronised adoptions can be realised only when the improved cost-sharing contract generates more profits and introduces excess momentum. Highlights Blockchain-based traceability system handles product losses and forged information Adoption decision-making processes under two different pricing policies are studied In the adoption process, the premium effect outweighs the loss-reduction effect Contract may introduce insufficient momentum, excess momentum, or new inefficiency Once excess momentum is formed, supply chain members' adoptions become synchronised

The interplay between marketplace channel addition and pricing strategy in an e-commerce supply chain

E-commerce platforms are increasingly adopting a dual-format model. In addition to the reselling channel, these platforms may provide the marketplace channel for manufacturers or resellers. This study investigates the marketplace channel addition and pricing strategy in an e-commerce supply chain (ECSC) comprising one e-commerce platform, one manufacturer, and one reseller. We examine three marketplace channel addition scenarios defined by whether the manufacturer, reseller or both can sell products through the marketplace channel. The ECSC members may choose a differential pricing (DP) or a uniform pricing (UP) strategy in different scenarios. The results show that the platform is always willing to add a marketplace channel for the reseller under the DP strategy, while the manufacturer prefers to enter the marketplace alone. In contrast, under the UP strategy, if the commission rate is low and the channel competition intensity is high, the manufacturer chooses to introduce the marketplace channel separately to achieve a win-win situation with the platform. When considering both marketplace channel addition and pricing strategy, the manufacturer's and the platform's best choices are different. We also find that the manufacturer's participation in the UP strategy or delay in the retail price decision may reduce conflicts with the platform.

Dual Pricing Optimization for Live Video Streaming in Mobile Edge Computing With Joint User Association and Resource Management

Mobile live video streaming is expected to become mainstream in the fifth generation (5G) mobile networks. To boost the Quality of Experience (QoE) of streaming services, the integration of Scalable Video Coding (SVC) with Mobile Edge Computing (MEC) becomes a natural candidate due to its scalability and the reliable transmission supports for real-time interactions. However, it still takes efforts to integrate MEC into video streaming services to exploit its full potentials. We find that the efficiency of the MEC-enabled cellular system can be significantly improved when the requests of users can be redirected to proper MEC servers through optimal user associations. In light of this observation, we jointly address the caching placement, video quality decision, and user association problem in the live video streaming service. Since the proposed nonlinear integer optimization problem is NP-hard, we first develop a two-step approach from a Lagrangian optimization under the dual pricing specification. Further, to have a computation-efficient solution and less performance loss, we provide a one-step Lagrangian dual pricing algorithm by the convex transformation of non-convex constraints. The simulations show that the service quality of live video streaming can be remarkably enhanced by the proposed algorithms in the MEC-enabled cellular system.

The differential pricing of cash flows and total accruals

PurposeRecent studies on the securities market's differential pricing of earnings components indicate that cash flows from operations are valued more highly than extreme total accruals. However, no previous study has examined whether cash flows from operations have a higher valuation than moderate total accruals. Therefore, this study examines the securities market's differential pricing of cash flows from operations and both moderate and extreme total accruals.Design/methodology/approachThe study's sample is divided into two sub-samples: a moderate total accruals sub-sample; and an extreme total accruals sub-sample. To evaluate whether cash flows have a higher valuation when compared to total accruals, for the entire sample and for each of the two sub-samples, the study examines the statistical significance of the difference between slope coefficients of cash flows and total accruals for regression of returns on both unexpected cash flows from operations and unexpected total accruals.FindingsConsistent with prior research, results from the entire sample show a differential higher valuation of cash flows when compared to total accruals. Another finding, consistent with recent studies, is that cash flows from operations have a higher valuation when compared to extreme total accruals. However, there is no higher differential valuation of cash flows over moderate total accruals. These findings support the decomposition of earnings into the components of cash flows from operations and total accruals only when total accruals are extreme (rather than moderate).Practical implicationsA possible explanation for these results is that since accruals predict cash flows, total accruals – when moderate (i.e. not extreme) – are priced similarly to cash flows. These results reveal that when total accruals are moderate, earnings are a better proxy for the underlying cash flows (over the entire future horizon, not just the current period) than is cash flows. However, since total accruals are unlikely to persist in a permanent way over the years, these results indicate that the decomposition of earnings into the components of cash flows from operations and total accruals is consistent with the information set used to value equity securities. Therefore, separate disclosure of cash flows is value relevant. In addition, users of financial statements certainly need the cash flows information as an ex-post validation of the prior earnings.Originality/valueThis study's contribution stems from its determination of the preferred level of disaggregation of earnings components (i.e. operating cash flows and total accruals). This is expected to help investors in their attempt to enhance the outcome of their informed investment and credit decisions.

Joint Optimization of Facility Layout and Spatially Differential Parking Pricing for Parking Lots

The parking cruising problem can be attributed to the unbalanced spatial parking space occupancy in the parking lot with multiple trip purposes and high traffic volumes, and it has already become an obstacle to improving travel efficiency. This study aims to investigate the reasons for the unbalanced occupancy of parking spaces and develop strategies to achieve spatial equilibrium by reducing parking cruising time. A field survey is first conducted to analyze the factors influencing parking space choice behavior, such as searching distances, walking distances, parking price, and parkers’ attributes. Based on the survey, a mixed logit model is calibrated to reveal parking space choice patterns of different parkers. Afterwards, the parking lot is divided into three zones based on searching distances and walking distances, using the K-means algorithm. According to the results, a simulation-based optimization model is then established, for minimizing the variance of average occupancy. An optimal pricing strategy is obtained at last. A case study in Nanjing, China, is conducted to verify the feasibility and rationality of the proposed method. The difference between weekdays and weekends is explored. The results show that, with the optimal strategies, the standard deviation of average occupancy in each zone decreases by 39.52% during weekends and 42.29% during weekdays. Finally, political implications and recommendations on the layout design of facilities and the adoption of differential parking pricing strategies are provided.

COVID-19 Vaccine Service Delivery Challenges: A Rapid Assessment of Private Health Facilities Providing COVID-19 Vaccination in Maharashtra, India, 2021

International Journal of Medicine and Public Health,2022,12,4,169-174.DOI:10.5530/ijmedph.2022.4.31Published:January 2023Type:Original ArticleCOVID-19 Vaccine Service Delivery Challenges: A Rapid Assessment of Private Health Facilities Providing COVID-19 Vaccination in Maharashtra, India, 2021Aikant Bhatti, Purva Raj, Rishabh Chopra, Ravdeep Gandhi, Jessica Mooney, Farzana Muhib, and Manoj Mehta Aikant Bhatti1, Purva Raj2,*, Rishabh Chopra3, Ravdeep Gandhi4, Jessica Mooney5, Farzana Muhib6, Manoj Mehta7 1Senior Monitoring, Evaluation and Learning Officer, PATH, India Country Program, 15th floor, Gopal Das Bhawan, Barakhamba Road, New Delhi, INDIA. 2Monitoring, Evaluation and Learning associate, PATH, India Country Program, 15th floor, Gopal Das Bhawan, Barakhamba Road, New Delhi, INDIA. 3Lead, Strategy and Communications, South Asia Region, PATH, India Country Program, 15th floor, Gopal Das Bhawan, Barakhamba Road, New Delhi, INDIA. 4Deputy Director, Marketing and Operations, PATH, India Country Program, 15th floor, Gopal Das Bhawan, Barakhamba Road, New Delhi, INDIA. 5Program Officer, CVIA Policy, Access, and Introduction Functional Area, PATH, Seattle Headquaters, 2201 Westlake Ave Suite 200, Seattle, WA 98121, UNITED STATES OF AMERICA. 6Senior Program Officer, CVIA Policy, Access, and Introduction Functional Area, Washington DC Headquarters, UNITED STATES OF AMERICA 7Data Manager, PATH, India Country Program, 15th floor, Gopal Das Bhawan, Barakhamba Road, New Delhi, INDIA. Abstract:Background: The private health sector has a significant role in the delivery of health services in India. However, given fast changing COVID-19 pandemic, it is critical to understand the role of the private health sector in delivery of services going forward. The supply of COVID-19 vaccines is firmly regulated by the Government of India and the private sector received unrestricted access to vaccine supply directly from manufacturers from June 2021 onwards. Materials and Methods: PATH carried out a rapid assessment of private health facilities in the state of Maharashtra to understand the challenges faced by private facilities in providing COVID-19 vaccination. Results: During the assessment it was found that 100% of the private health facilities have a robust cold chain system which is essential for safe storage of COVID-19 vaccines and delivery of immunization services. The in-charges of the health facilities reported difficulty in estimating requirement of COVID-19 vaccines doses, as 67% of the beneficiaries in Mumbai and Nashik were direct walk-ins. During the assessment 93.3% of the facilities were observed to have adequate availability of COVID-19 vaccines doses, based on the beneficiary registration data for the day. Ministry of Health, Government of India, recommends a trained 5-member vaccination team for providing services at each vaccination site. Conclusion: The key challenges faced by private health facilities during delivery of COVID-19 immunization were associated with differential vaccine pricing, time taken to receive supply of vaccines, difficulties in accurately estimating vaccine demand, multiple record keeping at the facility level and declining vaccine demand. Keywords:COVID–19 pandemic, Private health sector., Service delivery, VaccinationView:PDF (142.3 KB)

Drought shocks and price adjustments in local food markets in Chile: Do product quality and marketing channel matter?

AbstractLately, economies have been facing an increase in the frequency and magnitude of droughts, which come with potential consequences on food prices. This article aims to analyze how drought disturbances affect price differences in local food markets. Special attention is paid to differences in product quality and marketing channels. To study the mechanism behind price differences, our analysis is framed within the food market integration theory. Our methodology follows a dyadic regression approach, which allows us to exploit the panel data structure of our market price data. We use monthly Asterix potato and long shelf‐life tomato market prices from traditional markets and supermarkets in Chile. To measure drought intensity, we use remote sensing data to construct a drought index. Results show that drought shocks reduce market price differentials around harvesting and commercialization periods, which is supported by the existence of market integration. We also find that prices of high‐quality products, less perishable products, and those taken from traditional markets respond more intensively to droughts and take more time to be transmitted. A direct link between droughts and crop quality, as well as supermarkets’ larger capacity for buffer stock, may be behind these interpretations. Product differentiation and retail price rigidity arguments are also discussed.

Optimal Participation of RES Aggregators in Energy and Ancillary Services Markets

With the advent of bulk volumes of renewable energy, RES aggregators have evolved into key market players of the energy industry. This paper presents a holistic approach to derive the optimal offering strategy of a price-taker RES aggregator in the day-ahead energy and ancillary services markets. The day-ahead, the ancillary services and the real-time balancing market functions are modeled in detail. Fundamental imbalance settlement mechanisms are examined, namely Single Pricing, Two Price settlement and Dual Pricing. Several sources of uncertainty are considered affecting the day-ahead market prices, the ancillary services prices, the imbalance prices and the actual production of the RES aggregator. To cope with these uncertainties, a stochastic risk-constrained optimization model is formulated for the aggregator's optimal bidding. A realistic application in the Greek power system allows for examining the motivations for strategic bidding and accurate forecasting in each imbalance pricing scheme. The interplay between the energy and the ancillary services offers is analyzed, to examine the RES aggregator's motivations to bid for ancillary services.

Modeling Departure time choice of Metro Passengers: A case study of Delhi metro

Delhi metro is suffering from severe congestion due to booming travel demand. Differential pricing is an important and effective measure in traffic demand management (TDM). Whether pricing strategies work depends strongly on the responses of travelers to fare changes. Normally, the fare elasticity of demand is used to describe the relationship between demand changes and fare changes at an aggregate level. It is useful to estimate demand changes for system-wide and long-term pricing policies. However, for regional and short-term (valid time window is short) fare strategies, it is hard to capture the reactions just by the fare elasticity of demand. The retiming elasticity decreases greatly with increasing shift time, and 30 minutes is almost the maximum acceptable shift time for passengers. Moreover, the retiming elasticity of passengers in the middle term is approximately twice that in the short term. Applications of fare optimization are also executed, and the results suggest that optimizing the valid time window of the discount fares is a feasible way to improve the congestion relief effect of the policy, while policymakers should be cautious to change fare structures and increase discounts. Passengers' travel responses to fare changes are very complex and related to various external factors, such as service quality, travel preference, and socioeconomic factors. Past works on travel responses are usually specific to a certain region or transit system and assume that the external factors remain the same before and after the policy. Flexi fare is a successful measure in Beijing suburban railway and it handles the booming congestion of suburb rail. Modeling in departure time choice plays a vital role in caters the congestion in the metro and distributing the commuters at different intervals of time. The objective of this study is to understand the ridership pattern, mode-choice behaviour, trip purposes of users, and willingness to shift due to fare differential during the peak and non-peak hours in the metro rail system of Delhi. To know the different modeling departure time choice, it is necessary to know the willingness to shift to an off-peak hour or hike in peak hour fare. The study result shows that the users with work trips are willing to pay more but unwilling to shift from peak hour travel, and users with leisure trips are willing to shift to non-peak hour travel if the fare in peak hour changes. Therefore, new fare strategies should be recommended.