Road Pricing and Bus Service Policies
AbstractThis paper focuses on the fare and frequency of bus services when underpriced automobiles and buses use the same road. Three types of bus provision are considered: (1) second-best, (2) private monopolistic operation, and (3) operation under zero-profit constraint. By incorporating congestion interaction, this paper derives a decision rule on each bus service. Moreover, by investigating the effect of road pricing, it is shown that the direction of change in bus fares and private welfare depends on type of provision. More importantly, it is shown that private welfare can be improved even without revenue recycling due to the congestion interaction. © 2009 LSE and the University of Bath
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Bibliographic InfoArticle provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.
Volume (Year): 43 (2009)
Issue (Month): 1 (January)
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Web page: http://www.bath.ac.uk/e-journals/jtep
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- Marvin Kraus, 2011.
"Road Pricing with Optimal Mass Transit,"
Boston College Working Papers in Economics
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- Gonzales, Eric Justin, 2011. "Allocation of Space and the Costs of Multimodal Transport in Cities," University of California Transportation Center, Working Papers qt7s28n4nj, University of California Transportation Center.
- Batarce, Marco & Ivaldi, Marc, 2011. "Travel Demand Model with Heterogeneous Users and Endogenous Congestion: An application to optimal pricing of bus services," CEPR Discussion Papers 8416, C.E.P.R. Discussion Papers.
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- Batarce, Marco & Ivaldi, Marc, 2010. "Travel Demand Model with Heterogeneous Users and Endogenous Congestion: An application to optimal pricing of bus services," TSE Working Papers 10-226, Toulouse School of Economics (TSE), revised Apr 2011.
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