Using Continuous Approximation for Service Quality and Fare Level Optimisation

Jin, Z., Schmöcker, J.-D. and Maadi, S. (2018) Using Continuous Approximation for Service Quality and Fare Level Optimisation. 15th Conference on Advanced Systems in Public Transport and TransitData (CASPT2018), Brisbane, Australia, 23-25 Jul 2018.

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This paper analyses the interaction between fares and public transport service quality. The rationale is that with higher fares the operator has more resources to provide a better service. Demand in turn will depend on both service quality and fare leading therefore to the question as to whether there is an optimal fare for different general types of cities. The model developed in this paper builds on the work of Daganzo (2010). Daganzo determines optimal network headway, stop spacing as well as the ratio of a central dense PT service area compared to the whole city size. The model input is kept at its minimum considering city size, average speed of services, population, the quality of an alternative service as well as fare sensitivity. In contrast to Daganzo we include fare and demand elasticity. With this it is possible to find some general insights for a range of scenarios what type of fare levels are favorable. We focus on a flat fare structure. It is found that in such a fare structure, from the viewpoint of maximizing social welfare, a minimum, low fare would be the best. However, if the operator cost coverage ratio is considered as objective function then there exists an optimal fare above the minimum fare. We discuss further for what type of cities acceptable cost coverage ratios are considered as well as illustrate a fairly complex interaction between the decision variables.

Item Type:Conference or Workshop Item
Glasgow Author(s) Enlighten ID:Maadi, Mr Saeed
Authors: Jin, Z., Schmöcker, J.-D., and Maadi, S.
College/School:College of Social Sciences > School of Social and Political Sciences > Urban Studies
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