Regulation strategies on the public transit system with information provision

The effects of various regulation strategies on the transit fare and frequency in public transit system with information provisionwas studied. Besides two extreme strategies, namely monopoly optimum and social optimum, the rate-of-return strategy and quantity control strategy were also investigated as two more realistic regulation policies. The model assumes that the arriving passengers follow passion process and the percentages of passengers who plan their trips are endogenous and depend on the frequency of service and on the quality of information provided. There is a certain relationship between monopoly optimal and social optimal under the above model. In addition, the problem of profit maximization by public transport company under transit regulations was also analyzed. The results of the study found that the information provided undersocial optimum is better than monopoly optimal, and the number of passengers under social optimumis two times than monopoly optimal, other exogenous variables also have a significant effect of the four kinds of regulation strategies.