Intercity Rail Transit Pricing Based On The Ramsey Model

In recent years, with the development of the economy, rail transit has emerged as a new traffic mode that deals with trips between urban agglomerations. Fare is an important factor to guarantee the attraction of intercity rail transit. How to develop a scientific and reasonable pricing system is an urgent problem to be solved. So, this article tries to develop a scientific pricing system based on the Ramsey model for a new transit system.so as to form a reasonable pricing system.First of all,based on the research of domestic and foreign scholars, this article analyzes the existing problems in the initial research and apply Ramsey model to solve the pricing problem of intercity rail transit. Next, the traffic characteristics and economic characteristics of intercity rail transit are analyzed, and the concept and features of intercity rail transit are defined. Based on the above, this paper puts forward the objectives and principles of intercity rail transit pricing, and determine whether the existing pricing theory is applicable to the intercity rail transit pricing. Then, the intercity rail transit pricing factors are analyzed, including transport costs, transport demand, competition of various traffic modes and residents trip characteristics. Subsequently, Ramsay pricing model is derived under the Ramsay pricing theory. Finally, it includes the establishment of the Ramsey pricing model method and the calibration of parameters. By forecasting the share rate, passenger volume, marginal cost and price elasticity of demand to determine the fare per km for intercity rail transit. A case study is carried out, of setting a price for the Changchun-Baicheng intercity rail transit, so as to apply the method. At the same time, an investigation of passenger travel is conducted in Baicheng. The fare for the Changchun-Baicheng intercity rail transit can be calculated by the above method.This article builds up a pricing methodology, including the establishment of the Ramsey pricing model and the calibration of parameters. It provides an important reference for completing the intercity rail transit pricing system. Furthermore, the Ramsey pricing model is helpful in meeting the requirements of the rail transit enterprises and intercity transit passengers, it also can maximize public welfare. Consequently, it has a practical significance to the intercity rail transit pricing.