EFFICIENT PRICES FOR ROADWAYS AND TRANSIT SERVICE

This article discusses some issues and fallacies associated with identifying efficient prices for transportation services. Issues include: (1) theoretical justification for prices equal to short-run marginal costs, (2) problems of imposing efficient prices, (3) composition of short-run marginal costs, (4) desirability of short- versus long-run costs as a basis for prices, and (5) the possibility that short- and long-run costs are equivalent. Examples are taken from the areas of roadway use charges and transit fares. The desirability of efficient charges is not discussed. While many economists and planners have advocated efficient transportation user charges, there may be other valid considerations that suggest modifications to a set of efficient charges. These concerns include the equity implications of efficient charges, the need to finance transportation services, effect of political and institutional constraints, managerial incentives, and other issues.

• Record URL:
  https://hdl.handle.net/2027/mdp.39015021808632?urlappend=%3Bseq=449
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/7938948
• Corporate Authors:

  Eno Transportation Foundation

  1250 I Street, NW, Suite 750
  Washington, DC  United States  20005
• Authors:
  • Hendrickson, C
  • Wohl, M
• Publication Date: 1982-7

Media Info

• Features: Figures;
• Pagination: p. 433-449
• Serial:
  • Transportation Quarterly
  • Volume: 36
  • Issue Number: 3
  • Publisher: Eno Transportation Foundation
  • ISSN: 0278-9434

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Cost allocation; Externalities; Marginal costs; Pricing
• Subject Areas: Finance; Public Transportation;

Filing Info

• Accession Number: 00371935
• Record Type: Publication
• Files: TRIS
• Created Date: Apr 29 1983 12:00AM