Research Article

Pricing for Refund Service Fee of High-Speed Railway: An Optimization Approach with Uncertain Demand

Table 2

Parameters and variables.

Variables or parametersDefinition

Origin-destination (OD) pair in the transportation service which is composed of the train stops, from station to station , equivalent to segment
OD pair where ticket cancellation (refund) behavior occurs
Number of days (periods) included in the presale period
day (periods) in the presale period
Event, passenger arrival from the beginning of the presale period to the day. Equal to time period ()
Number of passengers arriving
Gamma function
Parameters of negative binomial distribution
High-speed railway train,
0-1 judgment variable, when train provides service between , then ; otherwise,
Passenger group,
The proportion of passenger group to all passengers between
Travel time of train between
Average price between
Average travel time between
Travel time of train
Utility obtained from train for passenger group between
Selection probability of passenger group choosing train between
Parameters of utility function
Number of remaining tickets between or
Capacity of train
Upper limit of the proportion of the refund service fee to the ticket price on the day

Decision variableDefinition

Refund service fee of train on the day