IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v63y2018icp200-208.html
   My bibliography  Save this article

Determining optimal frequency at ferry crossings

Author

Listed:
  • Jørgensen, Finn
  • Solvoll, Gisle

Abstract

The paper derives a model that shows how welfare optimal frequency at a ferry crossing depends on its level of traffic, ferry users' time costs, the cost structure of ferry operations, and the length of the crossing. The model takes into account the fact that travellers may not arrive randomly at the ferry terminals due to long headways, and it demonstrates in a clear way the influences of crossing and ferry fleet characteristics on optimal frequency. Using Norwegian data for ferry users' time costs and for the costs of operating ferry services, the model's results indicate that the authorities recommend too low a frequency, especially on high-traffic ferry crossings. The results also emphasise that the length of the crossing has a great impact on optimal frequency; optimal frequency at long crossings is less than half that of short crossings for all levels of traffic. Lastly, the model shows that it is more serious from a welfare perspective to undersupply frequency with X units than to oversupply it with X units.

Suggested Citation

  • Jørgensen, Finn & Solvoll, Gisle, 2018. "Determining optimal frequency at ferry crossings," Transport Policy, Elsevier, vol. 63(C), pages 200-208.
    • Handle: RePEc:eee:trapol:v:63:y:2018:i:c:p:200-208
    DOI: 10.1016/j.tranpol.2017.12.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X17303293
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2017.12.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Xiaoyan & Paulley, Neil & Hudson, Mark & Rhys-Tyler, Glyn, 2006. "A method for the design of optimal transport strategies," Transport Policy, Elsevier, vol. 13(4), pages 329-338, July.
    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. Hadas, Yuval & Shnaiderman, Matan, 2012. "Public-transit frequency setting using minimum-cost approach with stochastic demand and travel time," Transportation Research Part B: Methodological, Elsevier, vol. 46(8), pages 1068-1084.
    4. Jan K. Brueckner, 2004. "Network Structure and Airline Scheduling," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 291-312, June.
    5. Jørgensen, Finn & Pedersen, Hassa & Solvoll, Gisle, 2004. "Ramsey pricing in practice: the case of the Norwegian ferries," Transport Policy, Elsevier, vol. 11(3), pages 205-214, July.
    6. Finn Jorgensen & Berner Larsen & Terje Andreas Mathisen, 2013. "Optimal Fare And Quality In Passenger Transport Under Different Regulatory Regimes," Articles, International Journal of Transport Economics, vol. 40(1).
    7. Börjesson, Maria & Fung, Chau Man & Proost, Stef, 2017. "Optimal prices and frequencies for buses in Stockholm," Economics of Transportation, Elsevier, vol. 9(C), pages 20-36.
    8. Jørgensen, Finn & Mathisen, Terje Andreas & Larsen, Berner, 2011. "Evaluating transport user benefits and social surplus in a transport market--The case of the Norwegian ferries," Transport Policy, Elsevier, vol. 18(1), pages 76-84, January.
    9. Luigi dell’Olio & Angel Ibeas & Francisco Ruisánchez, 2012. "Optimizing bus-size and headway in transit networks," Transportation, Springer, vol. 39(2), pages 449-464, March.
    10. Panzar, John C, 1979. "Equilibrium and Welfare in Unregulated Airline Markets," American Economic Review, American Economic Association, vol. 69(2), pages 92-95, May.
    11. Fosgerau, Mogens, 2009. "The marginal social cost of headway for a scheduled service," Transportation Research Part B: Methodological, Elsevier, vol. 43(8-9), pages 813-820, September.
    12. Steven Chien & Jongho Byun & Athanassios Bladikas, 2010. "Optimal stop spacing and headway of congested transit system considering realistic wait times," Transportation Planning and Technology, Taylor & Francis Journals, vol. 33(6), pages 495-513, June.
    13. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sandberg Hanssen, Thor-Erik & Larsen, Berner, 2020. "The influence of waiting time on the value of headway time on a ferry service in Norway," Research in Transportation Economics, Elsevier, vol. 82(C).
    2. Thor-Erik Sandberg Hanssen & Finn Jørgensen & Berner Larsen, 2020. "Determinants affecting ferry users’ waiting time at ferry terminals," Transportation, Springer, vol. 47(4), pages 1711-1732, August.
    3. Díez-Gutiérrez, María & Tørset, Trude, 2019. "Perception of inconvenience costs: Evidence from seven ferry services in Norway," Transport Policy, Elsevier, vol. 77(C), pages 58-67.
    4. Odeck, James & Høyem, Harald, 2021. "The impact of competitive tendering on operational costs and market concentration in public transport: The Norwegian car ferry services," Research in Transportation Economics, Elsevier, vol. 90(C).
    5. Clark, Derek J. & Mathisen, Terje Andreas, 2020. "Salience in a simple transport market," Research in Transportation Economics, Elsevier, vol. 82(C).
    6. Høyem, Harald & Odeck, James, 2020. "Optimal public transit frequency under stochastic demand and fixed vehicle size: Application in the Norwegian car ferry sector," Research in Transportation Economics, Elsevier, vol. 82(C).
    7. Høyem, Harald, 2022. "Public transport frequency and risk-taking behavior," Economics of Transportation, Elsevier, vol. 30(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Borger, Bruno & Fosgerau, Mogens, 2012. "Information provision by regulated public transport companies," Transportation Research Part B: Methodological, Elsevier, vol. 46(4), pages 492-510.
    2. Høyem, Harald & Odeck, James, 2020. "Optimal public transit frequency under stochastic demand and fixed vehicle size: Application in the Norwegian car ferry sector," Research in Transportation Economics, Elsevier, vol. 82(C).
    3. Socorro, M. Pilar & Betancor, Ofelia, 2011. "Optimality of environmental policies in air transport markets and changes in the schedule delay: A theoretical approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(9), pages 850-860, November.
    4. Høyem, Harald, 2022. "Public transport frequency and risk-taking behavior," Economics of Transportation, Elsevier, vol. 30(C).
    5. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    6. Coulombel, Nicolas & Monchambert, Guillaume, 2023. "Diseconomies of scale and subsidies in urban public transportation," Journal of Public Economics, Elsevier, vol. 223(C).
    7. Savage, Ian, 2010. "The dynamics of fare and frequency choice in urban transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(10), pages 815-829, December.
    8. Martín, Juan Carlos & Pilar Socorro, M., 2009. "A new era for airport regulators through capacity investments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(6), pages 618-625, July.
    9. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    10. Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2018. "Do buses hinder cyclists or is it the other way around? Optimal bus fares, bus stops and cycling tolls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 326-346.
    11. Bull, Owen & Muñoz, Juan Carlos & Silva, Hugo E., 2021. "The impact of fare-free public transport on travel behavior: Evidence from a randomized controlled trial," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    12. Vigren, Andreas & Pyddoke, Roger, 2020. "The impact on bus ridership of passenger incentive contracts in public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 144-159.
    13. Sun, Yanshuo & Guo, Qianwen & Schonfeld, Paul & Li, Zhongfei, 2016. "Implications of the cost of public funds in public transit subsidization and regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 236-250.
    14. Lin, Ming Hsin, 2012. "Airlines-within-airlines strategies and existence of low-cost carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 637-651.
    15. Börjesson, Maria & Fung, Chau Man & Proost, Stef & Yan, Zifei, 2017. "Cycling tolls and optimal number of bus stops: the importance of congestion and crowding," Working papers in Transport Economics 2017:10, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    16. David Flath, 2012. "Why Do We Tip Taxicab Drivers?," Japanese Economy, Taylor & Francis Journals, vol. 39(3), pages 69-76.
    17. Wang, Chunan & Wang, Xiaoyu, 2019. "Airport congestion delays and airline networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 328-349.
    18. Jan K. Brueckner & Ricardo Flores-Fillol, 2006. "Airline Schedule Competition: Product-Quality Choice in a Duopoly Model," Working Papers 050629, University of California-Irvine, Department of Economics.
    19. Asplund, Disa & Pyddoke, Roger, 2020. "Optimal fares and frequencies for bus services in a small city," Research in Transportation Economics, Elsevier, vol. 80(C).
    20. Börjesson, Maria & Eliasson, Jonas & Rubensson, Isak, 2020. "Distributional effects of public transport subsidies," Journal of Transport Geography, Elsevier, vol. 84(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:63:y:2018:i:c:p:200-208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.