A 13,000-km High Speed Railway network will be built in the next three years in China, making the competition between the intercity bus and intercity railway inevitable. In the intercity passenger transportation market where both of the two sectors exist, cooperation was not apparent in the market. To avoid losing the market, intercity bus operators adopted new methods, including price reduction, bus frequency increase, and the construction of new stations far away from intercity railway station. This paper presents a pricing model between two commuting modes, intercity bus and intercity railway, based on the game theory. The current cases show that the intercity bus sectors are losing their market as the intercity railway comes into commission. This paper proposes a model to describe how ticket price and profit varies under different parameters.
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