Prices, Schedules, and Passenger Welfare in Multi-Service Transportation Systems

Etienne Billette de Villemeur and Annalisa Vinella

No 7843, CESifo Working Paper Series from CESifo

Abstract: We consider a multi-service transportation system in which passengers are heterogeneous along two dimensions, namely ideal departure time and value of time, leading to both horizontal and vertical differentiation. We investigate the behavior of passengers, and assess how service pricing and scheduling affect their travel choices and welfare. We show that this depends, first, on whether passengers are uninformed or informed about the timetable of services, supplied at different prices, upon arrival at the station. Besides, given the information passengers hold, it also depends on their (individual-specific) value of time. The market segmentation results accordingly, and is found to be finer, in general, when passengers are informed. Our analysis offers policy-makers a scientifically founded tool to make sensible decisions, based on the exact identification of those who would gain and those who would lose from policy changes. The analysis further highlights the potential benefits of information, and points to the importance of facilitating information accessibility to passengers.

Keywords: travel demand; service scheduling; market segmentation; targeted policy-making; impact of information (search for similar items in EconPapers)
JEL-codes: D01 L91 L98 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-com, nep-reg, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp7843.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_7843

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().