Optimal Algorithm and Empirical Analysis for Urban Transit Pricing Based on Demand Elasticity

Urban bus fare is an important factor in the healthy development of public transport systems. Fare pricing must take into account the dual nature of marketability and public welfare of bus enterprises. While ensuring the quality of services, it should also consider operating costs and maximize public transport demand so as to achieve both economic and social benefits. This paper, according to the theory of user equilibrium, constructs a demand analysis model for urban multi-modal transportation trips. The sensitivity analysis method is used to get the calculation method of urban public transport price-demand elasticity. On this basis, a bi-level planning model for city bus fare optimization and corresponding solution algorithm are proposed by fully considering the impact of various factors such as traffic characteristics of various modes, bus demand elasticity, bus operating costs, and government price limits. Finally, based on a residents' travel survey and bus operation data, the changing law of the bus demand under different conditions and the optimization strategy of urban bus fares are analyzed. Copyright © 2019 by Science Press.