THE PEAK IN ROAD PASSENGER TRANSPORT - AN EMPIRICAL STUDY

A COMPARATIVE STUDY WAS MADE OF THE LONG-RUN MARGINAL COSTS AND REVENUES RESULTING FROM THE RUSH HOUR IN A MEDIUM-SIZED MUNICIPAL ENTERPRISE RUNNING A FLEET OF 180 VEHICLES IN A PREDOMINANTLY URBAN AREA. RESULTS SHOW THAT THE LONG-RUN MARGINAL COST IS GREATER THAN THE LONG-RUN MARGINAL REVENUE, AND THAT, THEREFORE, THE RUSH HOUR HAS AN ADVERSE EFFECT ON THE UNDERTAKING'S FINANCIAL POSITION. THREE REMEDIAL POLICIES WERE EXAMINED: CONTINUATION OF PRESENT PRICING POLICY, RAISING FARES AT RUSH HOUR, AND WITHDRAWAL OF SERVICE. THE MAIN CONSEQUENCE OF THE FIRST POLICY IS A CROSS-SUBSIDY OF THE RUSH HOUR BY OFF-PEAK TRAVELLERS. THE OTHER TWO POLICIES WOULD INVOLVE SOCIAL COST. THE OPTIMUM POLICY MIGHT INVOLVE SOME FORM OF SUBSIDY PAID TO THE OPERATOR IN RESPECT OF RUSH HOUR SERVICE.

  • Availability:
  • Corporate Authors:

    London School of Economics and Political Science

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

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00202515
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Files: TRIS
  • Created Date: Feb 3 1973 12:00AM