Research on the Price Optimization of Passenger Dedicated Line in China

The issue about the construction of passenger dedicated lines(PDL) in China is still a controversy, especially when the government emphasized the price will be market-oriented.. When comparing other developed countries, the price of PDL in China is still relatively low, however, the ticket price accounts for a large proportion in citizen's disposable income. Both operator and passengers are bearing heavy financial burden. Therefore, as a methodology of marketization, more flexible ticket price, which is based on the value of time, is made by building Logit model. Furthermore, in order to satisfy the need of the whole society, relevant subsides or price adjustment can boost the efficiency of operation and optimize the welfare of the society.