Research On System Dynamics Pricing Method Of Railway Passenger-Dedicated Line

The construction of the passenger-dedicated line, which will change the present transportation pressure greatly, promote regional economics and optimize the industrial structure along the line, has already become significant to the Chinese railway great-leap-forward development. At the same time, it is can be predicted that the competition will be much fiercer. As a result, whether the transport price is appropriate or not will become an important factor, affecting the market share and vitalities of the passenger-dedicated company, and thus determining the future development of the dedicated passenger traffic line.Taking Jinghu passenger-dedicated line for example, the methods including theory analysis with demonstration and qualitative with quantitative are applied in this paper. The paper also analyzes the pricing theory, methods and models in the view of the economics and system dynamics, which is expected to be helpful for proper pricing of the dedicated passenger traffic line.Firstly, the internal and external factors, which influence the formation and movement of transport price, such as transport cost, market demands and competition are discussed in detail. Secondly, three directions of pricing are compared and two pricing models are given. For the sake of their one-sidedness, regular analytical methods can't be well used in the pricing course of the passenger-dedicated line. Then, considering all the related factors and taking advantage of the system dynamics, the causality and flow process charts are constructed and a pricing model is established to forecast the level and future variation of the transport price and related factors through computer simulation. The advantage of system dynamic pricing is that it is possible to take all influential factors into account. Therefore, it will provide more reasonable theory advises and reflect the practical movement of transport price reliably.