Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Influence of Travel Distance and Transport Operators' Objectives on Fares, Transport Quality and Generalised Transport Costs

Contents:

Author Info

  • Finn Jørgensen
  • Pål Andreas Pedersen

    ()

Registered author(s):

    Abstract

    A theoretical model is adopted in order to examine optimal fare and optimal quality of supply schemes for a transport operator. The analysis shows how fares and quality of supply are related to travel distance and to the transport operator's weight on profit versus consumer surplus. Under reasonable assumptions imposed on the actual functions, it is found that the more weight the operator gives to profits, the higher the fare level and the higher the generalised travel costs. How the operator's objectives influence the quality of transport and how travelling distance affects fares, quality of transport and generalised travel costs are ambiguous, and depend on the initial restrictions placed on the actual functions. The paper then investigates how different additional restrictions imposed upon the functions influence the results. The paper also examines the special case in which the quality of transport is exogenous to the transport operator. One important result then is that higher demands towards the transport operator regarding the quality of the transport supply do not necessarily reduce the transport users' generalised travel costs.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0104.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0104.

    as in new window
    Length:
    Date of creation: Mar 2001
    Date of revision:
    Handle: RePEc:ukc:ukcedp:0104

    Contact details of provider:
    Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
    Phone: +44 (0)1227 764000
    Fax: +44 (0)1227 827850
    Web page: http://www.ukc.ac.uk/economics/

    Order Information:
    Email:

    Related research

    Keywords: Travel distance; operators' objectives; optimal fare; optimal quality; generalised costs;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
    2. Baumol, William J & Bradford, David F, 1970. "Optimal Departures from Marginal Cost Pricing," American Economic Review, American Economic Association, vol. 60(3), pages 265-83, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ukc:ukcedp:0104. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emma Robinson).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.