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Public transport reliability and commuter strategy

Author

Listed:
  • Guillaume Monchambert

    (ENS Cachan - École normale supérieure - Cachan)

  • André De Palma

    (Department of Economics, Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique, ENS Cachan - École normale supérieure - Cachan)

Abstract

We consider the modeling of a bi-modal competitive network involving a public transport mode, which may be unreliable, and an alternative mode. Commuters select a transport mode and their arrival time at the station when they use public transport. The public transport reliability set by the public transport firm at the competitive equilibrium increases with the alternative mode fare, via a demand effect. This is reminiscent of the Mohring effect. The study of the optimal service quality shows that often, public transport reliability and thereby patronage are lower at equilibrium compared to first-best social optimum. The paper provides some public policy insights.

Suggested Citation

  • Guillaume Monchambert & André De Palma, 2014. "Public transport reliability and commuter strategy," Post-Print hal-00827972, HAL.
  • Handle: RePEc:hal:journl:hal-00827972
    DOI: 10.1016/j.jue.2014.02.001
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00827972v2
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    File URL: https://hal.archives-ouvertes.fr/hal-00827972v2/document
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    References listed on IDEAS

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    1. Fosgerau, Mogens & Small, Kenneth A., 2013. "Hypercongestion in downtown metropolis," Journal of Urban Economics, Elsevier, vol. 76(C), pages 122-134.
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    1. repec:eee:transa:v:103:y:2017:i:c:p:250-263 is not listed on IDEAS
    2. repec:eee:juecon:v:101:y:2017:i:c:p:106-122 is not listed on IDEAS
    3. Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2017. "Cycling tolls and optimal number of bus stops: the importance of congestion and crowding," Working papers in Transport Economics 2017:10, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Kilani, Moez & de Palma, André & Proost, Stef, 2017. "Are users better-off with new transit lines?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 95-105.
    5. de Palma, André & Lindsey, Robin & Monchambert, Guillaume, 2017. "The economics of crowding in rail transit," Journal of Urban Economics, Elsevier, vol. 101(C), pages 106-122.
    6. Moez Kilani & André De Palma & Stef Proost, 2016. "Are users better-off with new transit lines?," Working Papers hal-01282877, HAL.

    More about this item

    Keywords

    schedule delay; Mohring effect; welfare; duopoly; reliability; public transport;

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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