Stackelberg Game Model of Railway Freight Pricing Based on Option Theory
Joint Authors
Guo, Jingwei
Xie, Zhongqi
Li, Qinglin
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-06-22
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
In recent years, although rail transport has contributed significantly to the productivity of the Chinese economy, it has also been faced with the fierce competition and challenge from other modes of transportation, and therefore, freight-pricing issue has received more attention by researchers.
In this paper, the rail freight option (RFO) based on option theory is proposed to study the optimal pricing decision of the railway transportation enterprise and contract customers’ optimal purchase decisions.
To obtain an effective RFO contract, the railway freight contract transaction process is first analyzed.
Then, the theoretical framework for the RFO contract trading is put forward in the railway freight market.
Next, a two-stage Stackelberg game theoretic approach is presented based on the principle of utility maximization to achieve the optimal decision of RFO contract.
Subsequently, the reverse reasoning method in dynamic programming is used to solve the optimal combination decision of the contract customer.
Finally, the optimal pricing decision of RFO is discussed using Kuhn–Tucker conditions and Lagrangian function.
The result shows that the railway transportation enterprise should pay more attention to the option strike price w1 in terms of maximizing system utility and achieving Pareto optimal.
American Psychological Association (APA)
Guo, Jingwei& Xie, Zhongqi& Li, Qinglin. 2020. Stackelberg Game Model of Railway Freight Pricing Based on Option Theory. Discrete Dynamics in Nature and Society،Vol. 2020, no. 2020, pp.1-11.
https://search.emarefa.net/detail/BIM-1153276
Modern Language Association (MLA)
Guo, Jingwei…[et al.]. Stackelberg Game Model of Railway Freight Pricing Based on Option Theory. Discrete Dynamics in Nature and Society No. 2020 (2020), pp.1-11.
https://search.emarefa.net/detail/BIM-1153276
American Medical Association (AMA)
Guo, Jingwei& Xie, Zhongqi& Li, Qinglin. Stackelberg Game Model of Railway Freight Pricing Based on Option Theory. Discrete Dynamics in Nature and Society. 2020. Vol. 2020, no. 2020, pp.1-11.
https://search.emarefa.net/detail/BIM-1153276
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1153276