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This paper develops an approach for allocating bus service operating costs and revenues between peak and off-peak periods. It shows how the economic performance (relative profitability) of peak-period bus service depends on three relative measures--relative peaking, load factors, and schedule efficiency-labor practices. As an example, when the ratio of additional peak buses to base buses is 1.0 and the pay hours per bus hour for the additional buses are double those for the base buses, each bus in the peak would have to carry more than 1.5 times the base period ridership. When this ratio rises to 3, peak buses would have to carry double the passengers carried on each bus in the base period for the peaks to be as profitably. /Author/
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