Takeru　KANEKO

Optimal fare levels for a transportation network between cities with different financial scales, taking into account the marginal cost of public funds

Teppei KATO

Many public transportation services in rural areas are facing difficult financial situations, and discussions are underway regarding their continuation and how to raise funds. In cases such as disaster recovery, the costs are high, so there are increasing cases of financial support from local governments along the route and a system of separating overhead and overhead after recovery. As a result, in rural areas, there may be a situation where multiple transportation services operated by different entities exist on a network. In this paper, we analyze the toll levels of toll roads in a network spanning two cities with different financial scales, when each city maximizes its own social welfare under financial constraints. In doing so, we consider the welfare losses that occur when each city raises the funds to maintain the service. We also conduct numerical experiments to consider the differences in toll levels and social welfare that result from differences in financial scale, as well as schemes for reallocating funds.