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Estimating minimum and maximum fares of leased transport services

Author

Listed:
  • Carlos Henrique Rocha
  • Luiz Ricardo Cavalcante
  • Luiz Guilherme Oliveira

Abstract

In this article we present a method of pricing maximum and minimum fares of leased public utilities. The theoretical ground of such method is the investment valuation theory, which allows us to price financial and real assets. The suggested method applies to leased public transport services worldwide. After some simple adjustments, the method can be used to price leased public services such as water, electricity and so forth. Summing up, the proposed method can be used to calculate maximum and minimum fares of leased public transport services, including port infrastructure.

Suggested Citation

  • Carlos Henrique Rocha & Luiz Ricardo Cavalcante & Luiz Guilherme Oliveira, 2011. "Estimating minimum and maximum fares of leased transport services," Applied Financial Economics, Taylor & Francis Journals, vol. 21(16), pages 1159-1162.
  • Handle: RePEc:taf:apfiec:v:21:y:2011:i:16:p:1159-1162
    DOI: 10.1080/09603107.2011.564134
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