CLUB SUBSCRIPTIONS FOR PUBLIC TRANSPORT PASSENGERS

A BIAS IN THE ALLOCATION OF RESOURCES COMMONLY EXISTS IN FAVOR OF PRIVATE CARS RELATIVE TO PUBLIC TRANSPORT. THIS BIAS CAN ARISE WHENEVER A CONSUMER CHOOSES BETWEEN A CAR AND PUBLIC TRANSPORT, IF PUBLIC TRANSPORT RECOVERS ALL ITS COSTS AND CHARGES A SINGLE PRICE PER MILE. MISALLOCATION AMONG SEVERAL DECREASING COST PUBLIC TRANSPORT MODES IS ALSO LIKELY IF EACH IS REQUIRED TO RECOVER ALL ITS COSTS APPROXIMATION TO AN IDEAL RATE. BUT AN APPROXIMATELY IDEAL FIXED FEE PER PERIOD, COMBINED WITH A PRICE PER MILE TRAVELED, OFFERS IMPORTANT ALLOCATION ADVANTAGES. SUCH AN ARRANGEMENT WOULD LET MEMBERS SHARE THE FIXED COSTS (INCLUDING RISKS) OF PUBLIC TRANSPORT OVER A CONTRACTED TIME PERIOD, SAY ONE TO THREE YEARS. TO COMPENSATE FOR THE ALLOCATION BIASES, AN APPROXIMATELY IDEAL TWO-PART PRICE SYSTEM AND A PASSENGERS' CLUB INSTITUTION TO IMPLEMENT THEM ARE PROPOSED. THE PROPOSED INSTITUTION ENABLES EACH CONSUMER TO PLAN HIS TRANSPORT USAGE, TAKING ACCOUNT OF APPROXIMATE MARGINAL SPECIAL COSTS, AND ON THAT BASIS TO MAKE A FORWARD COMMITMENT EITHER TO PRIVATE OR PUBLIC TRANSPORT. PUBLIC TRANSPORT WOULD THEN BECOME A MORE EFFECTIVE SUBSTITUTE FOR PRIVATE CAR TRAVEL. /AUTHOR/

  • Availability:
  • Supplemental Notes:
    • Vol 1, pp 237-242
  • Authors:
    • Sherman, R
  • Publication Date: 1967-9

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Filing Info

  • Accession Number: 00240989
  • Record Type: Publication
  • Source Agency: Traffic Systems Reviews & Abstracts
  • Files: TRIS
  • Created Date: Jul 1 1994 12:00AM