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International Journal of Business Studies and Innovation
ISSN:2737-5331
Frequency: Quarterly Published by lIKll


Open Access
 IJBSI 2021/12
Vol.1, Iss.2 : 164-173
https://doi.org/10.35745/ijbsi2021v01.02.0015

Analysis of Pricing Decision of the High-Speed Railway under Airline’s Competition: Based on the Same Route


Hao Li1 and Ting Peng1*


1School of Economics & Management, Chongqing Jiaotong University, 400074, China


Abstract:
National policies on energy conservation and emission reduction call for the development of greener travel. The high-speed railway has irreplaceable advantages and status. At present, China’s high-speed railway mainly adopts a fixed pricing strategy, which has demerits such as insufficient demand and reduced profits, so that high-speed railway has a distinct disadvantage when competing with aviation. Accordingly, we investigate the high-speed railway’s optimal pricing strategy under the competition of airlines with the same route. Two pricing strategies are investigated for high-speed railway use: fixed pricing or dynamic pricing. Our analysis shows that dynamic pricing has positive effects on revenue and total social welfare. The development of high-speed railways is expected to play a major role in China’s transition to a low-carbon and green economic growth model, which is emphasized by the results.

Keywords:  Pricing, High-speed railway, Airline

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Received:N/A; Revised:N/A; Accepted:N/A; Published:December 30, 2021
*Corresponding author; e-mail: pt9509834@163.com


Citation:Li, H., & Peng, T.(2021). Analysis of Pricing Decision of the High-Speed Railway under Airline’s Competition: Based on the Same Route. International Journal of Business Studies and Innovation, 1(2), 164-173. https://doi.org/10.35745/ijbsi2021v01.02.0015

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Copyright: © 2021  The Author(s). Published with license by IIKII, Singapore. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
 

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