IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v179y2024ics0965856423003488.html
   My bibliography  Save this article

Distance traveled, transit design and optimal pricing

Author

Listed:
  • Jara-Díaz, Sergio
  • Gschwender, Antonio
  • Castro, Juan Cristóbal
  • Lepe, Matías

Abstract

Should transit prices vary with distance? And if so, how? Two arguments that point in opposing directions have been presented in the literature: long distance users induce larger operators’ costs while short distance users induce larger in-vehicle times. Here we formulate a stylized model of a corridor where these and other elements are taken into account to approach the optimal strategic design (frequency, vehicle size, and route length) and its associated optimal pricing problem considering identical users that travel different distances. A crucial element is the consideration of the crowding caused by passengers entering the system at different points along the corridor, affecting the value of in-vehicle time which increases with the load factor through a crowding factor that, ultimately, is the single element that triggers optimal prices that increase with distance at a decreasing rate.

Suggested Citation

  • Jara-Díaz, Sergio & Gschwender, Antonio & Castro, Juan Cristóbal & Lepe, Matías, 2024. "Distance traveled, transit design and optimal pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:transa:v:179:y:2024:i:c:s0965856423003488
    DOI: 10.1016/j.tra.2023.103928
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856423003488
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2023.103928?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:179:y:2024:i:c:s0965856423003488. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.