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Optimal Fares for Public Transport

In: Operations Research Proceedings 2005

Author

Listed:
  • Ralf Borndörfer

    (Konrad-Zuse-Zentrum für Informationstechnik Berlin)

  • Marika Neumann

    (Konrad-Zuse-Zentrum für Informationstechnik Berlin)

  • Marc E. Pfetsch

    (Konrad-Zuse-Zentrum für Informationstechnik Berlin)

Abstract

Summary The fare planning problem for public transport is to design a system of fares that maximize the revenue. We introduce a nonlinear optimization model to approach this problem. It is based on a discrete choice logit model that expresses demand as a function of the fares. We illustrate our approach by computing and comparing two different fare systems for the intercity network of the Netherlands.

Suggested Citation

  • Ralf Borndörfer & Marika Neumann & Marc E. Pfetsch, 2006. "Optimal Fares for Public Transport," Operations Research Proceedings, in: Hans-Dietrich Haasis & Herbert Kopfer & Jörn Schönberger (ed.), Operations Research Proceedings 2005, pages 591-596, Springer.
    • Handle: RePEc:spr:oprchp:978-3-540-32539-0_93
    DOI: 10.1007/3-540-32539-5_93
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    Cited by:

    1. Ralf Borndörfer & Nam-Dũng Hoang, 2015. "Fair ticket pricing in public transport as a constrained cost allocation game," Annals of Operations Research, Springer, vol. 226(1), pages 51-68, March.

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