IDEAS home Printed from https://ideas.repec.org/a/tpe/jtecpo/v44y2010i3p381-389.html
   My bibliography  Save this article

Oversupply or Undersupply in a Public Transport Monopoly? A Rejoinder and Generalisation

Author

Listed:
  • Vladimir Karamychev
  • Peran van Reeven

Abstract

A monopolist in public transport may oversupply frequency relative to the social optimum, as van Reeven (2008) demonstrates with homogeneous consumers. This paper shows that oversupply may also occur if this assumption is relaxed. Whether a monopolist oversupplies or undersupplies frequency depends on the degree of consumers' heterogeneity as reflected in the distribution of consumers' reservation prices. Oversupply is likely to occur when consumers' reservation prices are concentrated around the entry costs of the private car, being the main alternative to public transport. © 2010 LSE and the University of Bath

Suggested Citation

  • Vladimir Karamychev & Peran van Reeven, 2010. "Oversupply or Undersupply in a Public Transport Monopoly? A Rejoinder and Generalisation," Journal of Transport Economics and Policy, University of Bath, vol. 44(3), pages 381-389, September.
  • Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:3:p:381-389
    as

    Download full text from publisher

    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20100901)44:3L.381;1-
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Fangni & Yang, Hai & Liu, Wei, 2014. "The Downs–Thomson Paradox with responsive transit service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 244-263.
    2. Ljungberg, Anders, 2016. "Marginal cost-pricing in the Swedish transport sector – An efficient and sustainable way of funding local and regional public transport in the future?," Research in Transportation Economics, Elsevier, vol. 59(C), pages 159-166.
    3. Sun, Yanshuo & Guo, Qianwen & Schonfeld, Paul & Li, Zhongfei, 2016. "Implications of the cost of public funds in public transit subsidization and regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 236-250.
    4. Andrés Gómez-Lobo, 2011. "Monopoly, subsidies and the Mohring effect: A synthesis and an extension," Working Papers wp336, University of Chile, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:44:y:2010:i:3:p:381-389. 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). General contact details of provider: http://www.bath.ac.uk/e-journals/jtep .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.