Transit fare differentials: A theoretical analysis

Jui‐Hsien Ling

24 citations0/0 files storedJournal of Advanced Transportation

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Abstract

Abstract This paper compares the ridership. operator revenue, passenger‐km, and consumer surplus in uniform pricing policy versus the differential fare pricing system. The comparisons are assumed that the flat fare is set equal to average differential fares. With mathematical derivation, the paper investigates some of the properties of fare differentiation and discusses characteristics of a general nature. The theoretical results have spelled out the conditions under which pricing policy may yield higher performances. A simple numerical example is used to demonstrate the sensitivity of the model. Some recommendations for setting transit pricing policy are drawn from the results.

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References

1981The demand for public transport 1981Flat versus differentiated transit pricing: What's a fair fare?2014Economics of Public Transport 1971Congestion Interdependence and Urban Transit Fares 1981Demand for public transport 1988A quadratic programming model for designing and evaluating distance-based and zone fares for urban transit 1980EFFICIENCY AND EQUITY IMPLICATIONS OF ALTERNATIVE TRANSIT FARE POLICIES

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