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Service unreliability and bus subsidy

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  • Tisato, Peter

Abstract

This paper addresses the link between the degree of unreliability of bus services and the level of optimal bus subsidy. With unreliability influencing user cost, and user cost being a key determinant of optimal bus subsidy, it follows that there is a link between service unreliability and optimal subsidy. Service unreliability is shown to have quite a significant influence on optimal subsidy. The impact is rather small in cases where a single type of user behaviour (random or planned) occurs. In contrast, the impact is much more significant when a logit model is used to predict choice between the two types of user behaviour.

Suggested Citation

  • Tisato, Peter, 1998. "Service unreliability and bus subsidy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(6), pages 423-436, August.
    • Handle: RePEc:eee:transa:v:32:y:1998:i:6:p:423-436
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    References listed on IDEAS

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    1. Tisato, Peter, 1992. "User cost minimisation and transport subsidy," Economics Letters, Elsevier, vol. 39(2), pages 241-247, June.
    2. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
    3. J. K. Jolliffe & T. P. Hutchinson, 1975. "A Behavioural Explanation of the Association Between Bus and Passenger Arrivals at a Bus Stop," Transportation Science, INFORMS, vol. 9(3), pages 248-282, August.
    4. Strathman, James G. & Hopper, Janet R., 1993. "Empirical analysis of bus transit on-time performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(2), pages 93-100, April.
    5. Adebisi, O., 1986. "A mathematical model for headway variance of fixed-route buses," Transportation Research Part B: Methodological, Elsevier, vol. 20(1), pages 59-70, February.
    6. repec:bla:ecorec:v:73:y:1997:i:223:p:329-47 is not listed on IDEAS
    7. Peter Tisato, 1991. "Impact of a Cost Minimisation User Cost Model on Public Transport Subsidy," School of Economics and Public Policy Working Papers 1991-05, University of Adelaide, School of Economics and Public Policy.
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    Cited by:

    1. Zhi-Chun Li & William Lam & S. Wong, 2009. "The Optimal Transit Fare Structure under Different Market Regimes with Uncertainty in the Network," Networks and Spatial Economics, Springer, vol. 9(2), pages 191-216, June.
    2. Ling, Shuai & Jia, Ning & Ma, Shoufeng & Lan, Yanfei & Hu, Wandi, 2019. "An incentive mechanism design for bus subsidy based on the route service level," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 271-283.
    3. Ferreira, João-Pedro & Barata, Eduardo & Ramos, Pedro Nogueira & Cruz, Luis, 2014. "Economic, social, energy and environmental assessment of inter-municipality commuting: The case of Portugal," Energy Policy, Elsevier, vol. 66(C), pages 411-418.
    4. Luo, Qingyu & Bing, Xue & Jia, Hongfei & Song, Jinge, 2022. "An incentive subsidy mechanism for bus lines based on service level," Transport Policy, Elsevier, vol. 126(C), pages 1-13.
    5. Drevs, Florian & Tscheulin, Dieter K. & Lindenmeier, Jörg & Renner, Simone, 2014. "Crowding-in or crowding out: An empirical analysis on the effect of subsidies on individual willingness-to-pay for public transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 250-261.

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