URBAN CO-MODALITY WITH ELASTIC PASSENGER AND FREIGHT DEMANDS

This paper analytically investigates urban co-modality, i.e., using public transit systems for transporting both passengers and freight, considering endogenous freight and passenger demands and levels of services. We model and examine the characteristics of a co-modal system, where one freight operator serves freight customers, one transit operator serves passengers, and the transit operator also serves the freight operator by carrying part of the freight. The systemwide impact of the co-modality operation is examined. The analytical conditions under which there exists a co-modality strategy that improves consumer surpluses of transit and freight users and two operators' profits against the status quo without co-modality are derived. We also analytically and numerically compare the optimal operation decisions, operators' profits and users' welfare under different games between operators. Our results show introducing the comodality holds the potential to improve levels of services for both passengers and freight customers and can yield a Pareto- improving outcome.