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Are users better-off with new transit lines?

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  • Moez Kilani

    (EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

  • André de Palma

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Stef Proost

    (KU Leuven - Catholic University of Leuven = Katholieke Universiteit Leuven)

Abstract

This paper studies the entry of new competitors in public transport like long distance busses that compete with rail. A stylized model is used that analyzes the addition of a new more direct line in an existing network. We show that the introduction of the new line is only beneficial if there are relatively many users that want to use the new direct line. Our result raises serious concerns with respect to the decentralized management of transit systems.

Suggested Citation

  • Moez Kilani & André de Palma & Stef Proost, 2016. "Are users better-off with new transit lines?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01282877, HAL.
    • Handle: RePEc:hal:cesptp:hal-01282877
    Note: View the original document on HAL open archive server: https://ens.hal.science/hal-01282877
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    References listed on IDEAS

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    Cited by:

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    2. David, Quentin & Kilani, Moez, 2022. "Transport policies in polycentric cities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 101-117.
    3. Zulqarnain H. Khattak & Mark J. Magalotti & John S. Miller & Michael D. Fontaine, 2017. "Using New Mode Choice Model Nesting Structures to Address Emerging Policy Questions: A Case Study of the Pittsburgh Central Business District," Sustainability, MDPI, vol. 9(11), pages 1-16, November.

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    More about this item

    Keywords

    Transport investment; public transport; externalities 1;
    All these keywords.

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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