Nash Equilibrium of Public Transport Service Competition

This article looked through public transport operation scale decision-making process in planning with Nash Equilibrium from Game Theory in order to optimize the use of public transport resources. With defined interest, cost and response functions for public transport services, it built a model to describe the competition between public transport service sectors like bus companies and managed to reach Nash Equilibrium. Result of an example proves that if bus companies make separate decisions, they will put too many vehicles into operation. As a consequence, roads under overuse, cost increase, and passengers scatter. Public transport system failed to reach the optimization. That's why systematical macro-coordination on public transport planning is necessary and significant.