Evolutionary Game Model of Private Capital Investment in Urban Public Transportation

To address the previous researches' shortcomings on private capital investment in public transportation, a new private capital investment method in public transportation considering passenger value is proposed. An Evolutionary Game Model (EGM) is constructed to quantify the impacts of private capital investment. Evolutionary Game Theory (EGT) supposes players are bounded rational; therefore EGM is more in accordance with the real situation. Jinan city is detailed as a case study to show how public and private sectors change their strategies. Model results show that the proposed investment strategy is superior to the traditional one and is evolutionary stable, thus the strategy should be encouraged. The EGM established in this paper provides a quantitative analysis tool for administrators and researchers to guide investment strategies of private capital in public transportation and lays the foundation for further research.