High-speed rail and air transport competition under high flight delay conditions in China: A case study of the Beijing-Shanghai corridor

Feng Zhu, Xu Wu and Chengxuan Cao

Utilities Policy, 2021, vol. 71, issue C

Abstract: Flight delays have become a widespread phenomenon in many parts of the world, especially in China. Few studies have investigated the effect of high flight delays on the competition between high-speed rail (HSR) and air transport (AT). A model based on the applied game theory is developed to obtain the optimal strategies of the two players in equilibrium. Results reveal that the revenue created by HSR and AT have gradually decreased as the flight delay rate increases. Moreover, if the flight delay rate exceeds 30%, the HSR operator will receive more revenue by implementing fare discounts strategies.

Keywords: Competition; Quadratic programming model; Applied game theory (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:71:y:2021:i:c:s0957178721000679

DOI: 10.1016/j.jup.2021.101233

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