Intercity Traffic Fare Policy and Model Building from the Perspective of Sustainable Development

The key to the sustainable development of intercity traffic is the internal unity of improving efficiency of traffic and the protection of resources and environment. To achieve the harmonious unity, a principal means of economic control is to establish a reasonable system of ticket fare. Based on a probability-based disaggregating method and the generalized cost evaluation model of passengers' trips, the essay analyzes the factors which lead to the passengers' choices of trip modes. Studying the game theoretical model on the condition of free competitions among diverse means of transportation, it also points out the gaming relation of ticket fares among diverse transportation corporations when they aim at maximum profit. Last but not least, the essay presents the idea that the traffic pricing research from the perspective of sustainable development is different from the gaming relation of prices on the condition of free competition. It establishes correspondent models on government subsidy and ticket fare to the city traffic and provides basis for the government to enact traffic policies which promote the sustainable development of the local region.