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The Off-peak Demand for Train Kilometres and Train Tickets: A Microeconometric Analysis

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  • Daniel Van Vuuren
  • Piet Rietveld

Abstract

In this paper the authors model the demand for train kilometres with a disaggregate structural demand model, thereby recognising the fact that consumers have to make a simultaneous choice for this demand and for the type of ticket with which they want to travel. The model is in line with microeconomic theory, which implies that the choice of ticket type is closely linked to the indirect utlility function. Special attention has been paid to the possibility that individuals do not buy the ticket that would have been most advantageous, given their actual demand for train kilometres. A result implies that the average traveller behaves as if the price of a reduction card were more expensive than it actually is, which not only has considerable implications for the railway company whose aim is to maximise its revenues, but also for the government whose aim is to stimulate the use of public transport. © The London School of Economics and the University of Bath 2002

Suggested Citation

  • Daniel Van Vuuren & Piet Rietveld, 2002. "The Off-peak Demand for Train Kilometres and Train Tickets: A Microeconometric Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 36(1), pages 49-72, January.
    • Handle: RePEc:tpe:jtecpo:v:36:y:2002:i:1:p:49-72
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    Citations

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    Cited by:

    1. Wardman, Mark & Lythgoe, William & Whelan, Gerard, 2007. "Rail Passenger Demand Forecasting: Cross-Sectional Models Revisited," Research in Transportation Economics, Elsevier, vol. 20(1), pages 119-152, January.
    2. Jara-Díaz, Sergio & Cruz, Diego & Casanova, César, 2016. "Optimal pricing for travelcards under income and car ownership inequities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 470-482.
    3. van Vuuren, Daniel, 2002. "Optimal pricing in railway passenger transport: theory and practice in The Netherlands," Transport Policy, Elsevier, vol. 9(2), pages 95-106, April.
    4. De Borger, Bruno & Mayeres, Inge, 2007. "Optimal taxation of car ownership, car use and public transport: Insights derived from a discrete choice numerical optimization model," European Economic Review, Elsevier, vol. 51(5), pages 1177-1204, July.
    5. H. Schmale & T. Ehrmann & A. Dilger, 2013. "Buying without using -- biases of German BahnCard buyers," Applied Economics, Taylor & Francis Journals, vol. 45(7), pages 933-941, March.

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