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.
Topic: 13.1 Surface Passenger
The paper examines the welfare characteristics of second-best alternatives to first-best differentiated road pricing, when it is not possible to achieve optimal tax differentiation. The optimal second-best fee is found to be a weighted average of the first-best differentiated fees, the weights depending on factors such as elasticities and group sizes. The welfare effects of second-best regulation are evaluated.
This paper analyses the welfare effects of an optimal time-varying toll imposed during the morning journey to work, employing Vickrey’s bottleneck model and assuming fixed demand.
A computer simulation is used to compared uniform tolls on a congested facility against a price-discriminating toll scheme. The simulation illustrates that consumers would gain from discriminatory tolls. Price-discriminating user fees on crowded facilities with rationing by queues should be given due consideration.
This paper makes use of a model to investigate two objections to road congestion pricing: it may be inequitable and it generates perverse incentives for governments. The paper investigates how different congestion delay functions and different mixes of traffic affect these objections. The first is sensitive to these features; the second is more pervasive.
This article combines consideration of the possible objectives of a public enterprise with a discussion on price discrimination. British Rail is well placed for discriminatory pricing, but there are limits to what is practicable and desirable.
The comment is on the article by J.G. Gibson in the September 1981 issue of this Journal. The author of the article replies to this, and also to an earlier comment by C.A. Nash published in January 1982.
A Rational Alternative Fare Structure for British Rail’s London and South-East Commuter Passengers: A Comment
A comment on the article by J.G. Gibson in the September 1981 issue of this Journal.
Rational and equitable commuter fares would be highest for the few passengers travelling long distances, and lowest for the short congested stages to the terminus.
Marginal Cost Pricing of Scheduled transport Services. A Development and Generalisation of Turvey and Mohring’s Theory of Optimal Bus Fares
The conclusion reached in this paper is that optimal pricing of scheduled transport services in any mode will result in a financial deficit, especially in passenger transport.