A Stackelberg-based repurchase strategy for rail freight options (BRFO)

PLoS One. 2024 Sep 20;19(9):e0307215. doi: 10.1371/journal.pone.0307215. eCollection 2024.

Abstract

This study presents a novel Buyback Rail Freight Option (BRFO), leveraging Stackelberg game theory to enhance the strategic management of rail freight transactions. By integrating traditional buyback theory with a multi-phase trigeminal tree pricing model and parameter identification through a nonparametric Ito stochastic method, the research addresses key challenges of information asymmetry and market uncertainty. The proposed methodology emphasizes dynamic pricing strategies and market adaptation, constructing a Nash equilibrium framework within railway freight pricing. The findings suggest significant strategic benefits for railway enterprises, positioning BRFO as a crucial tool for improving competitiveness in the face of alternative transport options.

MeSH terms

  • Game Theory
  • Humans
  • Models, Economic
  • Railroads*

Grants and funding

This work was supported by the National Natural Science Foundation of China (No. 61803147). The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.