Abstract:In this paper,the benefits of passengers and railway departments are both considered and a bi level programming approach is presented in order to seek the optimal railway passenger ticket price under the competition between different inter city traffic modes.The lower level problem represents an equilibrium model that describes passengers'mode choice behavior under the condition of multimodal transportation. The upper level problem is to determine railway passenger ticket price to maximize the revenue of railway departments while considering passengers’mode-choice behavior.A heuristic algorithm for the bilevel rmlway pasenger—ticket pricing problem is also proposed.Firmlly the applications of the mod el and its algorithm are illustrated with a numerical example.