Research On Cumulative Prospect Theory-based Pricing Optimization Bi-Level Programming Model For High-speed Railway

With the technological advancements of high-speed railway and civil aviation transportation and the market economic system gradually deepened reformation, all transportation industries are rapidly developing. The industry scales expand unceasingly, the service capabilities promote gradually, and the safety levels increased significantly, all of which boost China’s socialist Modernization distinctly. However, The current stale price system is becoming more and more obviously restricts the development of all kinds of transportation, especially the sustainable development of high-speed railway. More flexible and adaptive pricing system need to be put forward urgently. In this paper, a prospect theory-based pricing optimization bi-level programming model for high-speed railway and civil aviation is set, which is used to analyze the game playing between high speed railway and civil aviation in the appropriate distance transportation. In this paper, through analyzing the current domestic and foreign research status about high-speed railway and civil aviation competition game, pricing optimization, the research of passengers decision behavior, a bi-level programming model is set:the upper planning is about the game between high-speed railway and civil aviation transportation within the scope of competitive time and length, using the price tool, which eventually reach the Nash equilibrium. The lower-level programming innovatively introduce the cumulative prospect theory so that it can be more close to the reality to depict limited rational individuals in decision making under uncertain environment. Assume that it only consider uncertainty affected by travel time, ignoring other factors. Bi-level programming model is established in this paper, describing the feasibility of the optimal solution and then make the solution, finally numerical simulations. At the same time, through the analysis of the model parameters it can draw a conclusion at a deeper level.