An Optimal Transit Fare and Frequency Design Model with Equity Impact Constraints

Abstract

Distance-based fares have been applied widely in practice using automatic fare collection technology. This paper proposes an optimization model for the distance-based transit fare structure. A bilevel model was formulated to obtain the optimal fare functions with the aim of minimizing the Gini coefficient of the entire transit system. Passengers’ travel behavior is modeled by a stochastic transit assignment problem in the lower level. Considering the inherent complexity of the bilevel model, a heuristic algorithm, namely the artificial bee colony algorithm, is applied, which is incorporated with a method of successive averages to solve the transit assignment subproblem. The results show that the Euclidean distance–based fare has better performance in terms of social equity, but it is less equitable for passengers with middistance trips.

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