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The economics of seat provision in public transport

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  • Hörcher, Daniel
  • Graham, Daniel J.
  • Anderson, Richard J.

Abstract

Seated and standing travelling imply significantly different experience for public transport users. This paper investigates with analytical modelling and numerical simulations how the optimal seat supply depends on demand and supply characteristics. The paper explores the implications of seat provision on the marginal cost of travelling as well. In crowded conditions, we distinguish two types of external costs: crowding density and seat occupancy externalities. We derive, using a realistic smart card dataset, the externality pattern of a metro line, and identify the distorting role of the occupancy externality that makes the welfare maximising fare disproportionate to the density of crowding.

Suggested Citation

  • Hörcher, Daniel & Graham, Daniel J. & Anderson, Richard J., 2018. "The economics of seat provision in public transport," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 109(C), pages 277-292.
    • Handle: RePEc:eee:transe:v:109:y:2018:i:c:p:277-292
    DOI: 10.1016/j.tre.2017.11.011
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    References listed on IDEAS

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    Cited by:

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    2. Xuto, Praj & Anderson, Richard J. & Graham, Daniel J. & Hörcher, Daniel, 2021. "Optimal infrastructure reinvestment in urban rail systems: A dynamic supply optimisation approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 251-268.
    3. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    4. Hörcher, Daniel & Graham, Daniel J., 2018. "Demand imbalances and multi-period public transport supply," Transportation Research Part B: Methodological, Elsevier, vol. 108(C), pages 106-126.
    5. Svanberg , Lisa & Pyddoke, Roger, 2020. "Policies for on-board crowding in public transportation : a literature review," Working Papers 2020:6, Swedish National Road & Transport Research Institute (VTI).
    6. Wang, Bangjuan & Liu, Chengliang & Zhang, Hong, 2022. "Where are equity and service effectiveness? A tale from public transport in Shanghai," Journal of Transport Geography, Elsevier, vol. 98(C).
    7. Hörcher, Daniel & De Borger, Bruno & Seifu, Woubit & Graham, Daniel J., 2020. "Public transport provision under agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    8. Małgorzata Dudzińska & Marta Gross & Agnieszka Dawidowicz & Ada Wolny-Kucińska, 2023. "The Influence of Changing Socioeconomic Conditions in Europe on the Prioritisation of Risks in Travel Behaviour: A Case Study," Sustainability, MDPI, vol. 15(23), pages 1-24, December.

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