Second-best Decision Making of Railway Operators: How to Fix Fares, Frequency and Vehicle Size
Optimal strategies in railway networks call for a differentiated treatment of fares, frequencies, and vehicle sizes in various links. However, for several reasons, railway operators may apply uniform levels for these decision variables. In this paper the authors investigate the welfare losses implied by uniform setting of fares per km, frequencies, or vehicle sizes. This is done within the context of a model with uniform cost structures but where demand levels vary across segments of the network. They demonstrate that the largest welfare loss results when frequencies are made uniform across links. Their results suggest that where differentiated prices are important to address issues such as congestion and directional asymmetries in demand, differentiated supply in terms of vehicle size, and in particular frequencies, are the preferred ways of addressing demand variations on different segments in a network. © 2007 LSE and the University of Bath
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Douglas W. Caves & Laurits R. Christensen & Joseph A. Swanson, 1980. "Productivity in U.S. Railroads, 1951-1974," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 166-181, Spring.
- Erik Teodoor Verhoef & Jan Rouwendal, 2003.
"Pricing, Capacity Choice and Financing in Transportation Networks,"
ERSA conference papers
ersa03p41, European Regional Science Association.
- Erik T. Verhoef & Jan Rouwendal, 2004. "Pricing, Capacity Choice, and Financing in Transportation Networks," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 405-435.
- Erik T. Verhoef & Jan Rouwendal, 2003. "Pricing, Capacity Choice and Financing in Transportation Networks," Tinbergen Institute Discussion Papers 03-027/3, Tinbergen Institute.
- Piet Rietveld & Roberto Roson, 2002. "Direction dependent prices in public transport: A good idea? The back haul pricing problem for a monopolistic public transport firm," Transportation, Springer, vol. 29(4), pages 397-417, November.
When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:41:y:2007:i:3:p:363-385. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.