Abstract
Ticket pricing in public transport usually takes a welfare maximization point of view. Such an approach, however, does not consider fairness in the sense that users of a shared infrastructure should pay for the costs that they generate. We propose an ansatz to determine fair ticket prices that combines concepts from cooperative game theory and integer programming. An application to pricing railway tickets for the intercity network of the Netherlands is presented. The results demonstrate that prices that are much fairer than standard ones can be computed in this way.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
R. Borndörfer, M. Neumann, and M. E. Pfetsch, Optimal fares for public transport, Operations Research Proceedings 2005, (2006), pp. 591–596.
R. Borndörfer, M. Neumann, and M. E. Pfetsch,, Models for fare planning in public transport, Tech. Rep. ZIB Report 08-16, Zuse-Institut Berlin, 2008.
M. R. Bussieck, Optimal Lines in Public Rail Transport, PhD thesis, TU Braunschweig, 1998.
S. Engevall, M. Göthe-Lundgren, and P. Värbrand, The traveling salesman game: An application of cost allocation in a gas and oil company, Annals of Operations Research, 82 (1998), pp. 453–471.
D. Gately, Sharing the gains from regional cooperation: A game theoretic application to planning investment in electric power, International Economic Review, 15 (1974), pp. 195–208.
Å. Hallefjord, R. Helming, and K. Jèrnsten, Computing the nucleolus when the characteristic function is given implicitly: A constraint generation approach, International Journal of Game Theory, 24 (1995), pp. 357–372.
N. D. Hoang, Algorithmic Cost Allocation Game: Theory and Applications, PhD thesis, TU Berlin, 2010.
S. Littlechild and G. Thompson, Aircraft landing fees: A game theory approach, Bell Journal of Economics 8, (1977).
M. Maschler, B. Peleg, and L. S. Shapley, Geometric properties of the kernel, nucleolus, and related solution concepts, Mathematics of Operations Research, 4 (1979), pp. 303–338.
P. Straffin and J. Heaney, Game theory and the tennessee valley authority, International Journal of Game Theory, 10 (1981), pp. 35–43.
H. P. Young, Cost allocation, In R. J. Aumann and S. Hart, editors, Handbook of Game Theory, vol. 2, North-Holland, Amsterdam, 1994.
H. P. Young, N. Okada, and T. Hashimoto, Cost allocation in water resources development, Water Resources Research, 18 (1982), pp. 463–475.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2012 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Borndörfer, R., Hoàng, ND. (2012). Determining Fair Ticket Prices in Public Transport by Solving a Cost Allocation Problem. In: Bock, H., Hoang, X., Rannacher, R., Schlöder, J. (eds) Modeling, Simulation and Optimization of Complex Processes. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-25707-0_5
Download citation
DOI: https://doi.org/10.1007/978-3-642-25707-0_5
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-25706-3
Online ISBN: 978-3-642-25707-0
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)