The economic rationale for integrated tariffs in local public transport
Author: Marchese, Carla
Source: The Annals of Regional Science, Volume 40, Number 4, December 2006 , pp. 875-885(11)
Abstract:In this paper, it is shown that integrated tariffs can be used to extract the consumer's surplus when there are a lot of connections supplied so that the law of large numbers applies in the estimation of the consumer's willingness to pay. The time validity limitations of tickets are explained by a nonlinear pricing approach. Links between optimal pricing in local public transport and network characteristics are highlighted.
Document Type: Research article
Publication date: 2006-12-01