A Negotiation Model Development Based on Economic Effects of TKR in North Korean Side

A Negotiation Model Development Based on Economic Effects of TKR in North Korean Side

&nbsp;&nbsp;This paper attempts to develop a decision-making model for South and North Korean governments to negotiate economic effects of the Trans Korea Railway (TKR) in North Korean section. TKR will pass through the Korean peninsula and connect to the Euro-Asia Railroads such as the Trans Siberian Railway. A success of the TKR operations depends on a good understanding of economic effects, yielding by comparison between costs and benefits of TKR operation.<BR>&nbsp;&nbsp;Quantitative model can develop a decision making model to account for the economic effect of TKR. However, no prior study has focused on the economic effect of TKR with an optimization approach. A lack of research on this subject motivates this research. First, this paper employs a mixed integer programming for an optimization modeling technique to estimate the total transport cost using TKR. Next, based on the optimization models, a decision making model is developed to estimate the economic effect of TKR. The proposed model will provide information that helps policy makers in North Korea, South Korea and Japan reach an agreement on pricing of the TKR usage fee and total investment volume for improving TKR.