The Lanchester competition model has been introduced to study public investment in urban mass transit and the effect function of investment has been defined. Under the conditions of dynamic market share and dynamic market scale

the optimal strategy of public investment between rail-transit and bus transit has been discussed

and thus the optimal allocation proportion of public investment has been derived. Although the preferential development strategy of urban mass transition is the purport of the Twelfth Five-year Plan for public transit in Shanghai

there hasn't been a concrete scheme of investment in public transportation

particularly with regard to the investment scale and the investment allocation between rail transit and bus transit. Through the analysis of the allocation schemes of investment by the government in the rail-transit and bus transit enterprises

the intended target of the development of public transportation is achieved. Meanwhile

the evaluation of the rationality of previous allocation of resources will also help improve the performance of public transport investment in the future.