Intermodal competition with high speed rail-a game theory approach

Oliver Feng Yeu Shyr, Meng Fu Hung

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

It was estimated that approximately 50% of the air trips, 20% of rail trips, and 15% of freeway bus trips in Taiwan's western corridor would be replaced by Taiwan High Speed Rail (THSR) [5]. If the carriers of these trips are to compete with THSR, reducing flight frequency and allying airlines might be the most effective approaches. In this paper we calibrate the payoff functions of various modes with stated preference (SP) and revealed preference (RP) data and solve the new Nash Equilibrium by maximizing payoff functions with respect to fare rates and flight frequency after the operation of THSR. In the case study, we predict that allied airlines flying between Taipei and Kaohsiung would be difficult to remain profitable during the first quarter of THSR's operations, but the market share and the daily flight frequency will reduce by more than 50%.

Original languageEnglish
Pages (from-to)32-40
Number of pages9
JournalJournal of Marine Science and Technology
Volume18
Issue number1
Publication statusPublished - 2010 Feb 1

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game theory
Game theory
Rails
flight
motorway
Highway systems
market
air
speed
Air

All Science Journal Classification (ASJC) codes

  • Oceanography
  • Ocean Engineering
  • Mechanics of Materials
  • Mechanical Engineering

Cite this

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Intermodal competition with high speed rail-a game theory approach. / Shyr, Oliver Feng Yeu; Hung, Meng Fu.

In: Journal of Marine Science and Technology, Vol. 18, No. 1, 01.02.2010, p. 32-40.

Research output: Contribution to journalArticle

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