Optimal Pricing of Urban Passenger transport: A Simulation Exercise for Belgium

Optimal Pricing of Urban Passenger transport: A Simulation Exercise for Belgium

First, a simple theoretical model is developed that determines optimal prices for private and urban transport services in both the peak and off-peak periods of the day, taking into account all relevant private and external costs. Second, the model is implemented to study pricing policies in Belgium, using recent estimates of private and social marginal costs. Several applications are then considered.

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