A PRICING EXPERIMENT TO EVALUATE PRICE SENSITIVITY TO TOLL ROADS

Transportation authorities and private owners and operators of toll facilities are often faced with the question of what price to charge. The objective of the toll pricing can be either to reduce congestion and environmental damage or to raise funds for infrastructures investment. The article presents the results of a pricing experiment conducted for the Teodoro Moscoso Toll Bridge in San Juan, Puerto Rico. The price experiment was conducted to assess the potential effectiveness of segmented pricing as a means of increasing revenues and to obtain information on price sensitivity. Under the assumption that people who use the bridge frequently (commuters) may have a higher price elasticity than those who use the bridge occasionally (business travelers, airport passengers), the frequent user market was offered discount tickets for use within a limited time period. The results of the experiment were monitored using several mechanisms: surveys, traffic counts, discount card sales, and usage. Of the more than 1,000 airport employees who drive over the bridge daily, only about 20% purchased discount tickets and the price reduction did not persuade any new users.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03918440
• Corporate Authors:

  Instituti Editoriali e Poligrafici Internazionali

  Via Giosue Carducci 60, Ghezzano
  La Fontina,   Italy  56010
• Authors:
  • Shiftan, Y
• Publication Date: 2001-2

Language

• English

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 81-94
• Serial:
  • International Journal of Transport Economics
  • Volume: 28
  • Issue Number: 1
  • ISSN: 0391-8440
  • Serial URL: http://www.libraweb.net/riviste.php?chiave=67

Subject/Index Terms

• TRT Terms: Airport access; Discount; Drivers; Elasticity (Economics); Highway travel; Markets; Pricing; Sensitivity; Surveys; Toll bridges; Toll collection; Tolls; Traffic counts
• Identifier Terms: Teodoro Moscoso Toll Bridge (Puerto Rico)
• Uncontrolled Terms: Price sensitivity; Segmented pricing
• Geographic Terms: Puerto Rico; San Juan (Puerto Rico)
• Subject Areas: Aviation; Economics; Finance; Geotechnology; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00813911
• Record Type: Publication
• Files: TRIS, ATRI
• Created Date: Jul 9 2001 12:00AM