Generalized Nash managing game model for transit network

This paper presents a network equilibrium model for a deregulated transit system that can be used to describe the competition between different transit operators. The transit competition is portrayed as a n-player, non-cooperative game by changing the fare structure between a set of transit lines so as to maximize the profit of each transit operator within the oligopolistic market. A logit-type choice model is used to predict the passenger choices on arriving vehicles of various lines between any two consecutive transfer stations for their travel. A generalized Nash equilibrium will be achieved, which can be formulated as a quasi-variational inequality problem. Finally, a heuristic solution algorithm is proposed. A numerical example is given to illustrate the competition mechanism on the transit network.