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ARTÍCULO
TITULO

Analyzing competition between High Speed Rail and Bus mode using market entry game analysis

Varun Raturi    
Ashish Verma    

Resumen

The introduction of High Speed Rail (HSR) changes the dynamics of the passenger transport therefore understanding the market scenario after the entry of the HSR is of utmost importance. In this study, a market entry game is analysed in the context of High Speed Rail competing with the bus mode on the Bangalore-Mysore corridor. The game is modelled as an extensive form game whose outcome will determine the strategies of the players in the competitive scenario. A discrete choice model is constructed using revealed and stated preference data to compute the modal share in the hypothetical scenario. Utilities in terms of profit for each mode is calculated using assumed cost functions for different strategies of the mode operators. These utilities are then used to form the basis for the extensive form game for the market entry. The extensive form game (with and without perfect information) is analyzed by computing the sub game perfect Nash equilibrium of the game which determines best strategies for each player under different demand scenarios. This study therefore provides a scientific tool for policy makers to analyze best strategies for players under different demand scenarios thereby aiding in decision making.

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