Exploring air-rail cooperation in China under asymmetric dependency: An evolutionary game approach

Abstract

Air-rail transport for passenger travel is gaining attention as a sustainable solution to urbanization, climate change, and the growing demand for seamless travel. Despite its potential, air-rail cooperation in China remains underdeveloped, primarily due to asymmetric dependency between airlines and China Railway Group (CR). This study aims to investigate the dynamics of this cooperation, focusing on resource sharing, revenue distribution, and collaborative service models. By applying the theory of asymmetric dependency and constructing an evolutionary game model, this research analyzes the strategic interactions between CR and airlines. Additionally, it explores the role of policy tools, including subsidies, tax incentives, and penalties, in fostering sustainable cooperation. To enhance empirical relevance, the study incorporates a case study of the Shanghai Hongqiao hub to calibrate model parameters and bridge theoretical assumptions with real-world operational data. It is found that (1) Asymmetric dependency significantly influences air-rail cooperation, with CR's dominant position in railway resources restricting deeper collaboration and fairer revenue distribution; (2) Resource sharing and fair revenue distribution are crucial for the success of new air-rail cooperation, while collaborative service, though equally important, depends on the successful implementation of these two factors; (3) Economic incentives, such as additional airline revenue from increased occupancy, play a critical role in motivating participation in air-rail cooperation; (4) Punitive measures and subsidy policies reduce cooperation costs, fostering early-stage cooperation, while tax incentives are crucial for optimizing long-term benefit distribution. This research contributes to the understanding of the mechanisms underlying air-rail cooperation and provides practical policy recommendations for enhancing the efficiency and sustainability of air-rail transport systems.