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Economic analysis of tariff integration in public transport

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  • Takahashi, Takaaki

Abstract

In this paper, we examine the effects of integrating the tariffs of public transport operated by various institutions on the welfare of economy based on a simple model with users and operators of public transport. Special attention is paid to two benefits of tariff integration; the removal or alleviation of a distortion in consumers’ choices, which arises when a shorter route costs more, and the economies of scale in production.

Suggested Citation

  • Takahashi, Takaaki, 2017. "Economic analysis of tariff integration in public transport," Research in Transportation Economics, Elsevier, vol. 66(C), pages 26-35.
    • Handle: RePEc:eee:retrec:v:66:y:2017:i:c:p:26-35
    DOI: 10.1016/j.retrec.2017.08.001
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    References listed on IDEAS

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    1. Carla Marchese, 2006. "The economic rationale for integrated tariffs in local public transport," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(4), pages 875-885, December.
    2. Abrate, Graziano & Piacenza, Massimiliano & Vannoni, Davide, 2009. "The impact of Integrated Tariff Systems on public transport demand: Evidence from Italy," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 120-127, March.
    3. FitzRoy, Felix & Smith, Ian, 1999. "Season Tickets and the Demand for Public Transport," Kyklos, Wiley Blackwell, vol. 52(2), pages 219-238.
    4. FitzRoy, Felix & Smith, Ian, 1998. "Public transport demand in Freiburg: why did patronage double in a decade?," Transport Policy, Elsevier, vol. 5(3), pages 163-173, June.
    5. Alberto Cassone & Carla Marchese, 2005. "Welfare Effects of Price Integration in Local Public Transport," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(2), pages 257-274, June.
    6. Sharaby, Nir & Shiftan, Yoram, 2012. "The impact of fare integration on travel behavior and transit ridership," Transport Policy, Elsevier, vol. 21(C), pages 63-70.
    7. Felix FitzRoy & Ian Smith, 1999. "Season Tickets and the Demand for Public Transport," Kyklos, Wiley Blackwell, vol. 52(2), pages 219-238, May.
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    Cited by:

    1. Yaman, Firat & Offiaeli, Kingsley, 2022. "Is the price elasticity of demand asymmetric? Evidence from public transport demand," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 318-335.
    2. Vladimír Ľupták & Paweł Droździel & Ondrej Stopka & Mária Stopková & Iwona Rybicka, 2019. "Approach Methodology for Comprehensive Assessing the Public Passenger Transport Timetable Performances at a Regional Scale," Sustainability, MDPI, vol. 11(13), pages 1-18, June.

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    More about this item

    Keywords

    Common fare; Congestion; Distortion in consumers' choices; Distribution of wage; Economies of scale; Tokyo's subway system;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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