The Effect of Pricing Policy on the Optimum Timing of Investments in transport Facilities

The Effect of Pricing Policy on the Optimum Timing of Investments in transport Facilities

The author finds that marginal cost pricing leads to slower expansion of capacity than either higher or lower pricing. transport planners are advised how to find the same optimum expansion dates under common forms of user fees as under marginal cost pricing.

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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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