Hedonic pricing models for metropolitan bus services
AbstractConventional studies on the pricing of bus services use the cost structure to explain bus fares. In this paper, a hedonic pricing model for bus services in Hong Kong is estimated. The contributions of cost and market factors are uncovered. It is found that the cost factors dominate the determination of bus fares. In contrast to our expectation, bus fares do not react to competition faced by bus companies. Moreover, except the three cross-harbour tunnels, the bus fare has no direct relationship with the tolls of other tunnels. Our model serves well as a reference tool for bus companies to set market-acceptable bus fares.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 2 ()
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Hedonic Pricing Model; Bus Fares; Kowloon Motor Bus.;
Find related papers by JEL classification:
- R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
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