Pricing Method of the Flexible Bus Service Based on Cumulative Prospect Theory

Pricing directly affects the sustainable development of flexible bus service. This study proposes a profit maximization model and social welfare for operator based on cumulative prospect theory. Fares uncertain travel time due to unforeseen detours in serving passengers jointly affect passengers’ mode choice. On other hand, fares probabilistic choices over determine profits company welfare. explores relationship between probability choosing bus, trip fares, time. Serving more indicates profits, which also results longer detour thus decreasing bus. Considering interactive influence among passengers, we further calculate distribution. Finally, pricing is established compensate side effects detour. The show that heterogeneous can help obtain higher but have negligible In addition, long-distance services regulations profits.