Modeling of competition between public and private firms in bus transport industry

Abstract

Many industries of a modern economy display the interaction of private and public agents. In this paper we analyze the organization of bus network and discuss the characteristics of modeling the competition between fi rms in the bus industry. The author describes the simple model of competition between public and private fi rms and the equilibrium: the prices and the quality of this service set by private and public fi rms. In addition, the author discusses some possible modifi cations of the simple model. The research was carried out as provided by the HSE program of fundamental studies in 2010.