Private Capital Investment Behaviors in Public Transport Based on Prospect Theory

DOI

10.2991/978-94-6463-916-2_61How to use a DOI?

Keywords

private capital investment; public transport; prospect theory; Public-Private Partnership

Abstract

Considering the bounded rationality of investors in reality, this study analyzed the private investment decision behaviors in public transport based on prospect theory. The study took the minimum expected gain of investors as the reference point, considered the total return and investment of the project, the investment ratio and return ratio of investors, the intervention cost and decision weight, then constructed an investor prospect model. The numerical example shows that different reference points can affect the prospect values, leading to changes in the ranking of decision options, indicating that reference points play an important role in investors’ investment decisions. If the probability of obtaining high returns cannot be guaranteed, investors tend to choose low return and low-risk strategies, indicating that investors usually have a loss aversion mentality when making decisions. In order to attract private investment in public transport and improve the success rate of private investment in public transport, managers should develop flexible incentive mechanisms to provide investors with corresponding incentives to ensure the probability of obtaining returns. Compared with the expected utility theory, the prospect theory can better reflect the subjective differences in decision-making and is more consistent with real decisions.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yunqiang Xue
AU  - Jing An
AU  - Haibo Chen
AU  - Qingxia Huang
AU  - Yuhan Bi
AU  - Junying Li
PY  - 2025
DA  - 2025/12/22
TI  - Private Capital Investment Behaviors in Public Transport Based on Prospect Theory
BT  - Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)
PB  - Atlantis Press
SP  - 569
EP  - 578
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-916-2_61
DO  - 10.2991/978-94-6463-916-2_61
ID  - Xue2025
ER  -