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The Economics of Crowding in Public Transport

Author

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  • André de Palma

    (ENS Cachan - École normale supérieure - Cachan, X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique)

  • Robin Lindsey

    (Sauder - Sauder School of Business [British Columbia] - UBC - University of British Columbia)

  • Guillaume Monchambert

    (ENS Cachan - École normale supérieure - Cachan)

Abstract

We analyze trip-timing decisions of public transit users who trade off crowding costs and disutility from traveling early or late. Considering fixed and then endogenous demand, we derive the equilibrium distribution of users across trains for three fare regimes: no fare, an optimal uniform fare, and an optimal train-dependent fare that supports the social optimum. We also derive the optimal number of trains and train capacity, and compare them across fare regimes. Finally we calibrate the model to a segment of the Paris RER A mass transit system and estimate the potential welfare gains from train-dependent fares.

Suggested Citation

  • André de Palma & Robin Lindsey & Guillaume Monchambert, 2017. "The Economics of Crowding in Public Transport," Post-Print hal-01203310, HAL.
    • Handle: RePEc:hal:journl:hal-01203310
    DOI: 10.1016/j.jue.2017.06.003
    Note: View the original document on HAL open archive server: https://hal.science/hal-01203310v2
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    References listed on IDEAS

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    Cited by:

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    2. André de Palma & Robin Lindsey & Guillaume Monchambert, 2015. "Optimal fares and capacity decisions for crowded public transport systems," Post-Print hal-01223169, HAL.

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    Keywords

    public transport; crowding; pricing; optimal capacity; rail transit;
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