Pricing Analysis Of High-Speed Railway Based On Demand Elasticity And Scale Economy

The rapid development in high-speed railway enhances the level of rail transport service. In recent years, most of the high-speed railway lines show low demand, which is contradict to the vigorous development of construction. In this paper, we choose the pricing analysis as the breakthrough point. Based on the theory of demand elasticity and scale economy, we discuss strategies to promote the attraction of high-speed railway.First of all, this paper concerns on the demand elasticity theory and scale economy theory. Based on the analysis method for determination of the coefficient of demand elasticity, flexible pricing method in the application of high-speed railway pricing is analyzed in terms of the main factors influencing the high-speed railway transport demand elasticity, then for the positive growth of income, the adjustment scope of ticket pricing for different elasticity of demand is put forward:lacking demand elasticity of the ticket, when fares raise for amplitude of (0,-1/Ed-1) based on Po, income is positive; When demand is elastic, fares raise for amplitude of (-1/Ed-1,0) based on P0, income is positive. Then, based on the demand elasticity and economies of scale, this paper analyses the effectiveness of rate changes for consumers and producer. Secondly, combining the forms of high-speed railway scale economy, this paper considers the effect of scale economy to high-speed railway freight rate. Thirdly, in the form of questionnaire, the empirical analysis of the main factors, which includes personal attributes (occupation, source of income, travel cost and travel purpose, etc.) and high-speed railway transport characteristics (freight, departure and arrival time, speed, etc.), influencing the requirements of high-speed railway in China is carried out, and taking the Beijing-Shanghai high-speed railway as an example, calculating demand elasticity coefficient in transport demand peak and off-peak. At last, on the basis of the effects of lower fare to the benefit of high-speed railway, emphasizing the development of the social benefit of high-speed railway, this paper calculates the range of reduced fare for Beijing-shanghai high-speed railway. The economy class seat of high-speed railway costs RMB555.Positive growth of income could be obtained, income maximum growth is168.59billion yuan per year, when fare could be adjusted in the range of RMB (181.87,555)according to the off-peak demand elasticity, and every one yuan brings income the maximum increase of464.256million yuan; income maximum growth is168.59billion yuan per year, when fare could be adjusted in the range of RMB (206,555)according to the peak demand elasticity, and every one yuan brings income the maximum increase of40259million yuan.