How a Game Theoretic Approach Can Minimize the Cost of Train Passenger Services: An Intermodal Competition between Rail and Road Transport

Game theory models provide very powerful tools for evaluating strategies that are beneficial to both rail and road operators competing passengers on parallel routes. This study examines how game can help who incurring losses passenger transport identify minimise costs, using the methodology of dual linear programming analyse strategies. In identifying best minimising costs railway operator, maximising profits also identified. The model is set up between two (rail road) based income earned by from passengers. illustrates following: competitors determined; formation payoff matrix presentation mathematical problem competitors; results verification competitors. Leonid Hurwicz criterion was used verify optimal