Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory
Pricing directly affects the sustainable development of the flexible bus service. This study proposes a profit maximization model and a social welfare maximization model for the flexible bus operator based on the cumulative prospect theory. Fares and uncertain travel time due to unforeseen detours i...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2022-01-01
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| Series: | Journal of Advanced Transportation |
| Online Access: | http://dx.doi.org/10.1155/2022/1785199 |
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| _version_ | 1832564619327045632 |
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| author | Wanjing Ma Yuhang Guo Kun An Lei Wang |
| author_facet | Wanjing Ma Yuhang Guo Kun An Lei Wang |
| author_sort | Wanjing Ma |
| collection | DOAJ |
| description | Pricing directly affects the sustainable development of the flexible bus service. This study proposes a profit maximization model and a social welfare maximization model for the flexible bus operator based on the cumulative prospect theory. Fares and uncertain travel time due to unforeseen detours in serving passengers jointly affect passengers’ mode choice. On the other hand, fares and passengers’ probabilistic choices over the flexible bus jointly determine the profits of the flexible bus company and social welfare. This study explores the relationship between the probability of passengers choosing the flexible bus, trip fares, and uncertain travel time. Serving more passengers indicates more profits, which also results in longer detour time thus decreasing the probability of passengers choosing the flexible bus. Considering the interactive influence among passengers, we further calculate the detour time distribution. Finally, a pricing model is established to compensate for the side effects of the detour. The results show that heterogeneous fares can help the flexible bus company to obtain higher profits but have negligible influence on social welfare. In addition, the development of long-distance services and regulations over the detour time can also help to obtain more profits. |
| format | Article |
| id | doaj-art-84fe63b24bb4443ba2275ea978012e6f |
| institution | Kabale University |
| issn | 2042-3195 |
| language | English |
| publishDate | 2022-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Advanced Transportation |
| spelling | doaj-art-84fe63b24bb4443ba2275ea978012e6f2025-02-03T01:10:36ZengWileyJournal of Advanced Transportation2042-31952022-01-01202210.1155/2022/1785199Pricing Method of the Flexible Bus Service Based on Cumulative Prospect TheoryWanjing Ma0Yuhang Guo1Kun An2Lei Wang3The Key Laboratory of Road and Traffic EngineeringThe Key Laboratory of Road and Traffic EngineeringThe Key Laboratory of Road and Traffic EngineeringThe Key Laboratory of Road and Traffic EngineeringPricing directly affects the sustainable development of the flexible bus service. This study proposes a profit maximization model and a social welfare maximization model for the flexible bus operator based on the cumulative prospect theory. Fares and uncertain travel time due to unforeseen detours in serving passengers jointly affect passengers’ mode choice. On the other hand, fares and passengers’ probabilistic choices over the flexible bus jointly determine the profits of the flexible bus company and social welfare. This study explores the relationship between the probability of passengers choosing the flexible bus, trip fares, and uncertain travel time. Serving more passengers indicates more profits, which also results in longer detour time thus decreasing the probability of passengers choosing the flexible bus. Considering the interactive influence among passengers, we further calculate the detour time distribution. Finally, a pricing model is established to compensate for the side effects of the detour. The results show that heterogeneous fares can help the flexible bus company to obtain higher profits but have negligible influence on social welfare. In addition, the development of long-distance services and regulations over the detour time can also help to obtain more profits.http://dx.doi.org/10.1155/2022/1785199 |
| spellingShingle | Wanjing Ma Yuhang Guo Kun An Lei Wang Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory Journal of Advanced Transportation |
| title | Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory |
| title_full | Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory |
| title_fullStr | Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory |
| title_full_unstemmed | Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory |
| title_short | Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory |
| title_sort | pricing method of the flexible bus service based on cumulative prospect theory |
| url | http://dx.doi.org/10.1155/2022/1785199 |
| work_keys_str_mv | AT wanjingma pricingmethodoftheflexiblebusservicebasedoncumulativeprospecttheory AT yuhangguo pricingmethodoftheflexiblebusservicebasedoncumulativeprospecttheory AT kunan pricingmethodoftheflexiblebusservicebasedoncumulativeprospecttheory AT leiwang pricingmethodoftheflexiblebusservicebasedoncumulativeprospecttheory |