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The Relationship Between Fare and Travel Distance

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  • Finn Jørgensen
  • John Preston
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    Abstract

    This paper develops a model to examine how a transport operator who is concerned about both profit and consumer surplus will design a uniform fare scheme and the relationship between fare and travel distance within such a scheme. The paper also analyses how travellers' generalised cost are linked to trip length. It is shown that how fare and generalised cost relate to trip length is critically dependent on the weight the transport operator puts on profit and the assumptions made about the demand conditions. The model's results are discussed in the light of Norwegian data for bus and ferry transport. © 2007 LSE and the University of Bath

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    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20070901)41:3L.451;1-
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    Bibliographic Info

    Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

    Volume (Year): 41 (2007)
    Issue (Month): 3 (September)
    Pages: 451-468

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    Handle: RePEc:tpe:jtecpo:v:41:y:2007:i:3:p:451-468

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    Web page: http://www.bath.ac.uk/e-journals/jtep

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    Cited by:
    1. Clark, Derek John & Jørgensen, Finn & Mathisen, Terje Andreas, 2014. "Competition in complementary transport services," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 146-159.
    2. Clark, Derek J. & Jørgensen, Finn & Mathisen, Terje Andreas, 2011. "Relationships between fares, trip length and market competition," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(7), pages 611-624, August.

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