Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 133, Issue -, Pages -Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2019.101821
Keywords
Duopoly competition; Multi-segment journey; Transportation routes; Serial structure; Parallel structure
Categories
Funding
- National Natural Science Foundation of China [61661136002, 71873074]
- National Social Science Fund of China [18BJL109]
- Russian Fund for Basic Research [16-51-55006]
- Fundamental Research Funds for the Central Universities [2016QD012]
- Hong Kong Research Grants Council [14500516, 14501919]
- Chinese University of Hong Kong Direct Grants
- Tsinghua University Initiative Scientific Research Grant [20151080397]
- Tsinghua University Tutor Research Fund
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We consider duopoly competition among transportation firms operating on a multi -segment route, and analyze the welfare consequences of different market structures in serial and parallel transport network structures. Travellers are concerned with both price and latency, and may opt to avoid travel in the system altogether if conditions are insufficiently attractive. Firms simultaneously set prices to maximize their own profits. We derive the traffic flow consequences of duopoly, monopoly, price -free, and socially optimal scenarios for both the serial and parallel structures, drawing comparisons regarding traffic flows, prices, and welfare. In extensions of the model, we consider firms' operating costs, more than two firms, and hybrid market structures. The results point to a higher overall social welfare desirability of parallel competition along multi -segment transportation routes. Our study delivers important policy implications regarding the optimal route structure design.
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