Title

PRICING OF TRACK TIME IN RAILROAD OPERATIONS: AN INTERNAL MARKET APPROACH

Document Type

Journal Article

Publication Date

1994

Subject Area

infrastructure - track, economics - pricing, mode - rail

Keywords

Tracks, Railroad transportation, Railroad tracks, Rail transportation, Pricing, Equilibrium models, Double track, Class I railroads

Abstract

This paper presents a computable equilibrium model of an internal market for track resources in a railroad. The problem of estimating the value to each train of track capacity, which in turn is used to create the actual train schedules, is formulated as an N-player, noncooperative game with nondisjoint strategy sets. In this model, the effects of other traffic on a given train schedule (the mean and variance of total travel time) are represented by a line delay model for a scheduled railroad on a partially double track rail line. The generalized Nash equilibrium for the resulting game-theoretic model is found as a solution to a quasi-variational inequality problem. The goal of this model is to ascertain how close the prices from the internal market system (the game-theoretic model) comes to globally optimal prices. Data from a major Class I railroad are used to explore this issue in detail.

Comments

Transportation Research Part B Home Page: http://www.sciencedirect.com/science/journal/01912615