2019/05/30 by Evgeniy M. Ozhegov, Ozhegov, Evgeniy M., Alina Ozhegova +1
Business, Management and Accounting · Computer Science · Economics, Econometrics and Finance · Engineering · Social Sciences · #Consumer Market Behavior and Pricing #Econometrics (econ.EM) #FOS: Computer and information sciences #FOS: Economics and business #Machine Learning (cs.LG) #Transportation Planning and Optimization #Transportation Systems and Logistics #Urban and Freight Transport Logistics #cs.LG #econ.EM
paper · pdf · doi:10.48550/arxiv.1905.12859
arxiv created 2019/05/30 · openalex publication_date 2019/05/30 · arxiv updated 2019/05/31 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper describes the results of research project on optimal pricing for LLC "Perm Local Rail Company". In this study we propose a regression tree based approach for estimation of demand function for local rail tickets considering high degree of demand heterogeneity by various trip directions and the goals of travel. Employing detailed data on ticket sales for 5 years we estimate the parameters of demand function and reveal the significant variation in price elasticity of demand. While in average the demand is elastic by price, near a quarter of trips is characterized by weakly elastic demand. Lower elasticity of demand is correlated with lower degree of competition with other transport and inflexible frequency of travel.