BibTex format
@inproceedings{Horcher:2016,
author = {Horcher, D and Graham, DJ},
title = {Crowding and the marginal cost of travelling under second-best capacity provision},
year = {2016}
}
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Citation
RIS format (EndNote, RefMan)
TY - CPAPER
AB - The classic economic theory of capacity optimisation in public transport suggests that the welfare maximising frequency and vehicle size increase with demand, and therefore the optimal occupancy rate may not dependent on demand; crowding can be internalised through capacity adjustment. On the other hand, empirical studies show that the crowding externality does contribute significantly to the social cost of public transport usage in large metropolitan areas. This paper presents a theoretical framework that explains why rational second-best capacity provision may lead to a wide range of demand dependent crowding levels under economies of vehicle size, infrastructure constraints and demand fluctuations. We derive the marginal external waiting time, crowding and operational costs of travelling for second-best scenarios, and explore the resulting subsidy rates. Thus, we take an important step towards the full understanding of optimal demand and crowding dependent pricing in public transport.
AU - Horcher,D
AU - Graham,DJ
PY - 2016///
TI - Crowding and the marginal cost of travelling under second-best capacity provision
ER -