Road Pricing and Bus Service Policies

Kijung Ahn

45 citations0/0 files storedJournal of Transport Economics and Policy

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Transportation Planning and Optimization Transport and Economic Policies Transportation and Mobility Innovations

Abstract

This paper focuses on the fare and frequency of bus services when underpriced automobiles and buses use the same road. Three types of bus provision are considered: (1) second-best, (2) private monopolistic operation, and (3) operation under zero-profit constraint. By incorporating congestion interaction, this paper derives a decision rule on each bus service. Moreover, by investigating the effect of road pricing, it is shown that the direction of change in bus fares and private welfare depends on type of provision. More importantly, it is shown that private welfare can be improved even without revenue recycling due to the congestion interaction.

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References

1971OPTIMIZATION AND SCALE ECONOMIES IN URBAN BUS TRANSPORTATION 2013Urban Transportation Economics 2005Concepts of Price Elasticities of Transport Demand and Recent Empirical Estimates: An Interpretative Survey 2000Private toll roads: Competition under various ownership regimes 1980A Simple Bus Line Model for Optimisation of Service Frequency and Bus Size 1978An integrated fares policy for transport in London 2002Estimating the Welfare Effect of Congestion Taxes: The Critical Importance of Other Distortions within the Transport System 2000The Two‐Mode Problem: Second‐Best Pricing and Capacity

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2018Traffic dynamics in a bi-modal transportation network with information provision and adaptive transit services 2020The two-mode problem with bottleneck queuing and transit crowding: How should congestion be priced using tolls and fares?2014Agent-based optimisation of public transport supply and pricing: impacts of activity scheduling decisions and simulation randomness 2014Accounting for travel time variability in the optimal pricing of cars and buses 2015

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