IDEAS home Printed from https://ideas.repec.org/a/eee/transb/v104y2017icp733-756.html
   My bibliography  Save this article

Models for technology choice in a transit corridor with elastic demand

Author

Listed:
  • Moccia, Luigi
  • Giallombardo, Giovanni
  • Laporte, Gilbert

Abstract

We present two optimization models for a transit line under the assumption that the demand is elastic and can be approximated by a linear function of fare and passenger travel time components. These models can be used to strategically evaluate technology choices. We study the effect of demand elasticity on the technology choice by analytic and numerical comparison with some fixed demand models. We assume a range of objective functions having as two extrema the maximization of operator’s profit and the maximization of social welfare. We show both analytically and numerically that accounting for demand elasticity does not change the conclusions that can be derived by an equivalent fixed demand model. This invariance holds for a broad range of objective functions in the elastic case. The significant difference between the two objective function extrema lies in the proportions of captured demand.

Suggested Citation

  • Moccia, Luigi & Giallombardo, Giovanni & Laporte, Gilbert, 2017. "Models for technology choice in a transit corridor with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 733-756.
    • Handle: RePEc:eee:transb:v:104:y:2017:i:c:p:733-756
    DOI: 10.1016/j.trb.2017.06.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S019126151630947X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.trb.2017.06.001?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.

    References listed on IDEAS

    as
    1. George Kocur & Chris Hendrickson, 1982. "Design of Local Bus Service with Demand Equilibration," Transportation Science, INFORMS, vol. 16(2), pages 149-170, May.
    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.
    3. V. F. Hurdle, 1973. "Minimum Cost Locations for Parallel Public Transit Lines," Transportation Science, INFORMS, vol. 7(4), pages 340-350, November.
    4. Estrada, M. & Roca-Riu, M. & Badia, H. & Robusté, F. & Daganzo, C.F., 2011. "Design and implementation of efficient transit networks: Procedure, case study and validity test," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(9), pages 935-950, November.
    5. Leonardo J. Basso & Sergio R. Jara-Díaz, 2010. "The Case for Subsidisation of Urban Public Transport and the Mohring Effect," Journal of Transport Economics and Policy, University of Bath, vol. 44(3), pages 365-372, September.
    6. Perugia, Alessandro & Moccia, Luigi & Cordeau, Jean-François & Laporte, Gilbert, 2011. "Designing a home-to-work bus service in a metropolitan area," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1710-1726.
    7. Tirachini, Alejandro & Hensher, David A. & Jara-Díaz, Sergio R., 2010. "Restating modal investment priority with an improved model for public transport analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 1148-1168, November.
    8. Ian Savage & Kenneth A. Small, 2010. "A Comment on 'Subsidisation of Urban Public Transport and the Mohring Effect'," Journal of Transport Economics and Policy, University of Bath, vol. 44(3), pages 373-380, September.
    9. Daganzo, Carlos F., 2012. "On the design of public infrastructure systems with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1288-1293.
    10. Moccia, Luigi & Laporte, Gilbert, 2016. "Improved models for technology choice in a transit corridor with fixed demand," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 245-270.
    11. Badia, Hugo & Estrada, Miquel & Robusté, Francesc, 2014. "Competitive transit network design in cities with radial street patterns," Transportation Research Part B: Methodological, Elsevier, vol. 59(C), pages 161-181.
    12. Daganzo, Carlos F., 2010. "Structure of competitive transit networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 434-446, May.
    13. Peran van Reeven, 2008. "Subsidisation of Urban Public Transport and the Mohring Effect," Journal of Transport Economics and Policy, University of Bath, vol. 42(2), pages 349-359, May.
    14. G. F. Newell, 1979. "Some Issues Relating to the Optimal Design of Bus Routes," Transportation Science, INFORMS, vol. 13(1), pages 20-35, February.
    15. Vaughan, Rodney, 1986. "Optimum polar networks for an urban bus system with a many-to-many travel demand," Transportation Research Part B: Methodological, Elsevier, vol. 20(3), pages 215-224, June.
    16. Shyue Koong Chang & Schonfeld, Paul M., 1991. "Multiple period optimization of bus transit systems," Transportation Research Part B: Methodological, Elsevier, vol. 25(6), pages 453-478, December.
    17. Sivakumaran, Karthik & Li, Yuwei & Cassidy, Michael & Madanat, Samer, 2014. "Access and the choice of transit technology," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 204-221.
    18. Hörcher, Daniel & Graham, Daniel J. & Anderson, Richard J., 2017. "Crowding cost estimation with large scale smart card and vehicle location data," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 105-125.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    2. Hugo Badia, 2020. "Comparison of Bus Network Structures in Face of Urban Dispersion for a Ring-Radial City," Networks and Spatial Economics, Springer, vol. 20(1), pages 233-271, March.
    3. Luigi Moccia & Duncan W. Allen & Eric C. Bruun, 2018. "A technology selection and design model of a semi-rapid transit line," Public Transport, Springer, vol. 10(3), pages 455-497, December.
    4. Luigi Moccia & Duncan W. Allen & Gilbert Laporte & Andrea Spinosa, 2022. "Mode boundaries of automated metro and semi-rapid rail in urban transit," Public Transport, Springer, vol. 14(3), pages 739-802, October.
    5. Luigi Moccia & Duncan W. Allen & Gilbert Laporte, 2020. "A spatially disaggregated model for the technology selection and design of a transit line," Public Transport, Springer, vol. 12(3), pages 647-691, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moccia, Luigi & Laporte, Gilbert, 2016. "Improved models for technology choice in a transit corridor with fixed demand," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 245-270.
    2. Fielbaum, Andrés & Jara-Diaz, Sergio & Gschwender, Antonio, 2020. "Beyond the Mohring effect: Scale economies induced by transit lines structures design," Economics of Transportation, Elsevier, vol. 22(C).
    3. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    4. Chen, Peng (Will) & Nie, Yu (Marco), 2018. "Optimal design of demand adaptive paired-line hybrid transit: Case of radial route structure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 71-89.
    5. Amirgholy, Mahyar & Shahabi, Mehrdad & Gao, H. Oliver, 2017. "Optimal design of sustainable transit systems in congested urban networks: A macroscopic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 261-285.
    6. Sergio Jara-Díaz & Antonio Gschwender & Claudia Bravo, 2018. "Total cost minimizing transit route structures considering trips towards CBD and periphery," Transportation, Springer, vol. 45(6), pages 1701-1720, November.
    7. Coulombel, Nicolas & Monchambert, Guillaume, 2023. "Diseconomies of scale and subsidies in urban public transportation," Journal of Public Economics, Elsevier, vol. 223(C).
    8. Daniel Hörcher & Daniel J. Graham, 2021. "The Gini index of demand imbalances in public transport," Transportation, Springer, vol. 48(5), pages 2521-2544, October.
    9. Gschwender, Antonio & Jara-Díaz, Sergio & Bravo, Claudia, 2016. "Feeder-trunk or direct lines? Economies of density, transfer costs and transit structure in an urban context," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 209-222.
    10. Hugo Badia, 2020. "Comparison of Bus Network Structures in Face of Urban Dispersion for a Ring-Radial City," Networks and Spatial Economics, Springer, vol. 20(1), pages 233-271, March.
    11. Zhang, Junlin & Lindsey, Robin & Yang, Hai, 2018. "Public transit service frequency and fares with heterogeneous users under monopoly and alternative regulatory policies," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 190-208.
    12. Luo, Sida & Nie, Yu (Marco), 2020. "On the role of route choice modeling in transit sketchy design," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 223-243.
    13. Fielbaum, Andrés & Jara-Diaz, Sergio & Gschwender, Antonio, 2021. "Lines spacing and scale economies in the strategic design of transit systems in a parametric city," Research in Transportation Economics, Elsevier, vol. 90(C).
    14. Andrés Fielbaum & Sergio Jara-Diaz & Antonio Gschwender, 2017. "A Parametric Description of Cities for the Normative Analysis of Transport Systems," Networks and Spatial Economics, Springer, vol. 17(2), pages 343-365, June.
    15. Jara-Díaz, Sergio R. & Muñoz-Paulsen, Esteban, 2022. "Lessons from the strategic design of a bimodal public transport system on a linear city," Research in Transportation Economics, Elsevier, vol. 94(C).
    16. Chen, Haoyu & Gu, Weihua & Cassidy, Michael J. & Daganzo, Carlos F., 2015. "Optimal transit service atop ring-radial and grid street networks: A continuum approximation design method and comparisons," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 755-774.
    17. Fan, Wenbo & Mei, Yu & Gu, Weihua, 2018. "Optimal design of intersecting bimodal transit networks in a grid city," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 203-226.
    18. Luigi Moccia & Duncan W. Allen & Gilbert Laporte & Andrea Spinosa, 2022. "Mode boundaries of automated metro and semi-rapid rail in urban transit," Public Transport, Springer, vol. 14(3), pages 739-802, October.
    19. Sepúlveda, Juan Pablo & Galilea, Patricia, 2020. "How do different payment schemes to operators affect public transport concessions? A microeconomic model," Transport Policy, Elsevier, vol. 93(C), pages 27-35.
    20. Luo, Sida & Nie, Yu (Marco), 2019. "Impact of ride-pooling on the nature of transit network design," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 175-192.

    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:transb:v:104:y:2017:i:c:p:733-756. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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/548/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.