Optimal Bus Fares

Optimal Bus Fares

The authors consider how fares can be equated with marginal social costs including the cost of passengers' time. Fares should be higher on crowded buses to allow for the extra waiting time of would-be passengers.

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Optimal Public transport Price and Service Frequency

Because values of time and passenger behaviour depend on the level of frequency it is found that: (1) in urban public transport there may be one low-deficit local optimum and one high-deficit local optimum, one of which is global; (2) contrary to what might be expected, optimal financial deficit per passenger is typically larger for high frequency services than for low-frequency services; (3) the optimal off-peak may exceed the optimal peak price.

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