Optimal fares and frequencies for bus services in small cities

Disa Asplund and Roger Pyddoke
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Disa Asplund: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Roger Pyddoke: CTS - Centre for Transport Studies Stockholm (KTH and VTI), Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

No 2018:1, Working papers in Transport Economics from CTS - Centre for Transport Studies Stockholm (KTH and VTI)

Abstract: This paper evaluates the welfare effects of optimizing bus service fares and frequencies in small cities by modeling street congestion and crowding in public transport vehicles. The model is calibrated to the Swedish city of Uppsala. A simple demand model is used. Sensitivity analyses suggest that this is sufficient for representing important welfare effects, and that parameter uncertainty is more important than model uncertainty in this respect. The results indicate that there would be large, robust welfare gains from reducing public transport supply in Uppsala, especially in the outer zone of the city where reductions of supply would be large compared to the current situation. The welfare gains from adjusting fares would be smaller.

Keywords: Public transport; Bus; Demand model; Fares; Frequencies; Supply; Optimization; Urban; Welfare (search for similar items in EconPapers)
JEL-codes: R10 R41 R48 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2018-02-19, Revised 2019-04-08
New Economics Papers: this item is included in nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ctswps:2018_001

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