Game Study Of Fare Pricing Between High-speed Rail Passenger Transportation And Air Passenger Transportation

High-speed railway gradually changing the way of people travelling track with the rapid development and popularity of China’s high-speed railway, but also changing the pattern of China’s transportation, especially in the high-speed transport market, high-speed rail has had a huge impact on air transport, then both sides competition in the market is inevitable. However, fares are usually the most important and most direct means of competition, and therefore to develop a reasonable and balanced fare not only plays an active role for the healthy development of high-speed transport market, but also has realistic positive significance for the majority of travelers.The nature problem of the market competition of high-speed rail and aviation is changing travelers’ choice; in fact, they change passengers’options through their own marketing strategies, which make passengers’options tend to their own side. However, how to change the passenger travelers’options need to determine the factors of affecting passenger travelers which plays an important role on passengers’preference, then the factors of travel must be taken into account in the fare pricing. So this trip analyzes objective factors with the disaggregate model and game theory and other related individual choice theory to study it.Due to characteristics of high-speed rail and aviation in their competition, the intensity will change with changes of the distance, the paper has studied the phenomenon in detail by means of the Hotelling model of market competition. First, a relationship between market share and the distance of high-speed rail (aviation) has been established, then the distance as a linear market, were analyzed using Hotelling market competition model, which derived relationship between competition and distance of high-speed rail and aviation:that is the main scope of the high-speed rail and aviation competition focused on the middle distance,when the short distance travel, high-speed rail occupy a larger market; when the long-distance travel, aviation occupy a larger market. Then, based on this model, the Tickets Competition Model has been established, that can derive relations in fare competition, last Proposed corresponding competitive strategy according to Hotelling model.As for the competition between the two sides need to develop a reasonable and balanced fare competition, this article takes fare factors into account as well as passengers’ preferences, and use Hotelling model of price. Firstly, passenger choice model be made by Logit model, then use the model to determine passenger preference. Secondly, establish the Hotelling price competition model based on different preference of passengers, and then by solving the Hotelling model, draw the corresponding equilibrium solution, and finally to Beijing-Shanghai high-speed rail as an example to validate the model.