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Service unreliability and bus subsidy

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  • Tisato, Peter

Abstract

This paper addresses the link between the degree of unreliability of bus services and the level of optimal bus subsidy. With unreliability influencing user cost, and user cost being a key determinant of optimal bus subsidy, it follows that there is a link between service unreliability and optimal subsidy. Service unreliability is shown to have quite a significant influence on optimal subsidy. The impact is rather small in cases where a single type of user behaviour (random or planned) occurs. In contrast, the impact is much more significant when a logit model is used to predict choice between the two types of user behaviour.

Suggested Citation

  • Tisato, Peter, 1998. "Service unreliability and bus subsidy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(6), pages 423-436, August.
    • Handle: RePEc:eee:transa:v:32:y:1998:i:6:p:423-436
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    References listed on IDEAS

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    1. Tisato, Peter, 1992. "User cost minimisation and transport subsidy," Economics Letters, Elsevier, vol. 39(2), pages 241-247, June.
    2. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
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    7. Tisato, Peter, 1997. "User Economies of Scale: Bus Subsidy in Adelaide," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 329-347, December.
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    Cited by:

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    2. Ling, Shuai & Jia, Ning & Ma, Shoufeng & Lan, Yanfei & Hu, Wandi, 2019. "An incentive mechanism design for bus subsidy based on the route service level," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 271-283.
    3. Ferreira, João-Pedro & Barata, Eduardo & Ramos, Pedro Nogueira & Cruz, Luis, 2014. "Economic, social, energy and environmental assessment of inter-municipality commuting: The case of Portugal," Energy Policy, Elsevier, vol. 66(C), pages 411-418.
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    5. Drevs, Florian & Tscheulin, Dieter K. & Lindenmeier, Jörg & Renner, Simone, 2014. "Crowding-in or crowding out: An empirical analysis on the effect of subsidies on individual willingness-to-pay for public transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 250-261.

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