THE PEAK IN ROAD PASSENGER TRANSPORT: AN EMPIRICAL STUDY

A STUDY OF ONE ROAD PASSENGER TRANSPORT UNDERTAKING SHOWS THAT THE LONG-RUN MARGINAL COST OF THE DAILY PEAK IS GREATER THAN ITS LONG-RUN MARGINAL REVENUE. THREE ALTERNATIVE POLICIES THAT COULD BE PURSUED IN THIS SITUATION WERE CONSIDERED. THE COURSE OPEN TO THE OPERATOR SEEMS TO BE A COMBINATION OF RAISING FARES AT THE PEAK AND WITHDRAWING SOME OF THE ADDITIONAL SERVICES. THE SOCIAL COSTS OF THIS ARE NOT KNOWN; BUT IT WAS ESTIMATED THAT, IF AS A RESULT THE TRAVEL TIME OF ALL THOSE COMMUTING BY CAR IN THE TOWN WERE RAISED BY FOUR MINUTES PER JOURNEY, THE VALUE OF THE TIME LOSS WOULD EXCEED THE DEFICIT INCURRED ON THE PEAK AS A WHOLE. THUS THE OPTIMAL POLICY MIGHT INVOLVE SOME FORM OF SUBSIDY PAID TO THE OPERATOR IN RESPECT TO PEAK SERVICES. /AUTHOR/

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  • Corporate Authors:

    London School of Economics and Political Science

    Houghton Street, Aldwych
    London WC2A 2AE,   England 
  • Authors:
    • TYSON, W J
  • Publication Date: 1972-1

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Filing Info

  • Accession Number: 00241685
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 11 1972 12:00AM