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Demand for taxi services: new elasticity evidence

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  • John Rose
  • David Hensher

Abstract

This paper investigates the factors that influence the choice of, and hence demand for taxis services, a relatively neglected mode in the urban travel task. Given the importance of positioning preferences for taxi services within the broader set of modal options, we develop a modal choice model for all available modes of transport for trips undertaken by individuals or groups of individuals in a number of market segments. A sample of recent trips in Melbourne in 2012 was used to develop segment-specific mode choice models to obtain direct (and cross) elasticities of interest for cost and service level attributes. Given the nonlinear functional form of the way attributes of interest are included in the modal choice models, a simple set of mean elasticity estimates are not behaviourally meaningful; hence a decision support system is developed to enable the calculation of mean elasticity estimates under specific future service and pricing levels. Some specific direct elasticity estimates are provided as the basis of illustrating the magnitudes of elasticity estimates under likely policy settings. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • John Rose & David Hensher, 2014. "Demand for taxi services: new elasticity evidence," Transportation, Springer, vol. 41(4), pages 717-743, July.
    • Handle: RePEc:kap:transp:v:41:y:2014:i:4:p:717-743
    DOI: 10.1007/s11116-013-9482-5
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    References listed on IDEAS

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    1. Daniel Flores-Guri, 2003. "An Economic Analysis of Regulated Taxicab Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 255-266, December.
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    7. Bruce Schaller, 1999. "Elasticities for taxicab fares and service availability," Transportation, Springer, vol. 26(3), pages 283-297, August.
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    Cited by:

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    2. Yang, Zhuo & Franz, Mark L. & Zhu, Shanjiang & Mahmoudi, Jina & Nasri, Arefeh & Zhang, Lei, 2018. "Analysis of Washington, DC taxi demand using GPS and land-use data," Journal of Transport Geography, Elsevier, vol. 66(C), pages 35-44.
    3. Oh, Simon & Seshadri, Ravi & Azevedo, Carlos Lima & Kumar, Nishant & Basak, Kakali & Ben-Akiva, Moshe, 2020. "Assessing the impacts of automated mobility-on-demand through agent-based simulation: A study of Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 367-388.
    4. Christensen, Peter & Osman, Adam, 2021. "The Demand for Mobility: Evidence from an Experiment with Uber Riders," IZA Discussion Papers 14179, Institute of Labor Economics (IZA).
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    6. Rose, John M. & Hensher, David A., 2018. "User satisfaction with taxi and limousine services in the Melbourne metropolitan area," Journal of Transport Geography, Elsevier, vol. 70(C), pages 234-245.
    7. Wong, R.C.P. & Szeto, W.Y., 2018. "An alternative methodology for evaluating the service quality of urban taxis," Transport Policy, Elsevier, vol. 69(C), pages 132-140.

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