Agent-Based Simulation As A Support For Price-Setting In Passenger Transport

Companies operating in passenger transport face the challenge that they cannot easily assess the effects of pricing decisions they take. Particularly, many incumbent European Railways are revisiting their traditional pricing structures based on static distancebased fares and develop new ways for pricing their services. Building on insights of behavioural pricing and Revenue Management, I investigate on alternative, more revenue-efficient pricing structures for a focal railway company given individual passenger price reaction behaviour and intramodal competition. First experiments with the model suggest that a limited quota for permanent special offers is counterproductive, while an increase in fuel price gets relatively quickly absorbed by the market.