Determining the Optimum Ticket Prices in Bus Transportation by Using Game Theory: Case of Gümüşhane-İstanbul

In a competitive environment, companies must make strategic decisions aligned with their objectives to sustain their existence and advance. One of the methods used to determine the best strategy for companies is game theory. Using the game theory, this study aims to determine the optimal ticket prices for the services of two competing bus companies operating on the same route (Gümüşhane-İstanbul). For this purpose, data on ticket prices and passenger numbers set by the two bus companies between October 2023 and October 2024 were utilized. Based on the data obtained from the two bus companies, the companies’ strategies were first identified, and revenue values were calculated. Subsequently, a two-player, zero-sum, and 7x7 game matrix was constructed using these revenue values. Through the maxmin and minmax methods in game matrix, the saddle point of the game was identified, and the expected values for each strategy determined for each of the two bus companies were calculated separately. Considering these calculations, it was concluded that both companies should set ticket prices between 1,250 TL and 1,350 TL to maximize their revenues.