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Designing public transportationtariff scale by modeling demand (the case of moscow region commuter railway)

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Listed:
  • M. Dodlova
  • S. Kiselgof
  • R. Menyashev
  • K. Sorokin
  • E. Khmelnitskaya
  • E. Chernina

Abstract

Currently fares on public transport in Russia are calculated on the basis of carrier’s costs. The subsidies and tariffs are annually approved by the regulator on the basis of the costs’ structure. This paper presents another approach to the determination of tariffs, which is widespread in developed countries. It is based on modeling passengers’ reaction to fares and is able to create appropriate incentives for the carrier. We apply it to the case of commuter rail pricing in Moscow region. To do this, we model the revenue function and evaluate people’s reaction to fares to find an optimal tariff menu. These results can form the basis of a new methodology of tariff regulation of public transport in Russia.

Suggested Citation

  • M. Dodlova & S. Kiselgof & R. Menyashev & K. Sorokin & E. Khmelnitskaya & E. Chernina, 2013. "Designing public transportationtariff scale by modeling demand (the case of moscow region commuter railway)," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    • Handle: RePEc:nos:voprec:y:2013:id:548
    DOI: 10.32609/0042-8736-2013-6-100-119
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