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The Relationship Between Fare and Travel Distance

  • Finn Jørgensen
  • John Preston
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    This paper develops a model to examine how a transport operator who is concerned about both profit and consumer surplus will design a uniform fare scheme and the relationship between fare and travel distance within such a scheme. The paper also analyses how travellers' generalised cost are linked to trip length. It is shown that how fare and generalised cost relate to trip length is critically dependent on the weight the transport operator puts on profit and the assumptions made about the demand conditions. The model's results are discussed in the light of Norwegian data for bus and ferry transport. © 2007 LSE and the University of Bath

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    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20070901)41:3L.451;1-
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    Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

    Volume (Year): 41 (2007)
    Issue (Month): 3 (September)
    Pages: 451-468

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    Handle: RePEc:tpe:jtecpo:v:41:y:2007:i:3:p:451-468
    Contact details of provider: Web page: http://www.bath.ac.uk/e-journals/jtep

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