Volume 10, Issue 38 (12-2019)
jemr 2019, 10(38): 181-206 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Hassanpoor A, Khezri M. Providing Optimal Pricing Model for Urban Bus Services (Tehran Case Study). jemr 2019; 10 (38) :181-206
URL: http://jemr.khu.ac.ir/article-1-1776-en.html
URL: http://jemr.khu.ac.ir/article-1-1776-en.html
1- Kharazmin University , a.hassanpoor@khu.ac.ir
2- Boalee sina University
2- Boalee sina University
Abstract: (4213 Views)
Utilities and services can be divided into two types of public and private goods in terms of the nature of pricing. Urban bus services are pure private goods that have positive externality. The Mohering effect is one of the most important externality of bus services, which in fact justifies the philosophy and nature of subsidies by the municipality and the government. In this study, monetary calculation models of Mohering effect was explained and an optimal pricing model is provided for urban bus services. The results show that the optimal pricing model differs sharply from the Tehran Municipality bus ticket pricing policy.The empirical estimation of the model also shows the large difference between the current prices and the subsidy payment with the optimal values extracted from the proposed model.
Keywords: Private Commodity, Public Commodity, Mouhering Effect, Optimal Pricing of Bus Service, Optimal Subsidy
Type of Study: توسعه ای |
Subject:
بخش عمومی
Received: 2019/06/10 | Accepted: 2020/03/16 | Published: 2020/04/23
Received: 2019/06/10 | Accepted: 2020/03/16 | Published: 2020/04/23
References
1. Adams R. D., McCormick, K. (1993). The traditional distinction between Public and Private Goods Needs to Be Expanded, Not Abandoned. Journal of Theoretical Politics, 5 (1),5-22 [DOI:10.1177/0951692893005001005]
2. Alkharabsheh, A., Moslem, S., Szabolcs Duleba,S. (2019). Evaluating passenger demand for development of the urban transport system by an AHP model with the real-world application of Amman. Applied Sciences ,9(22), 2-14 [DOI:10.3390/app9224759]
3. Basso, L.J., Silva, H.E. (2014). Efficiency and substitutability of transit subsidies and other urban transport policies. Am. Econ. J.: Econ. Policy, 6 (4), 1-33. [DOI:10.1257/pol.6.4.1]
4. Börjesson, M., Fung, C.M., Proost, S. (2017). Optimal prices and frequencies for buses in Stockholm. Econ. Transp, 9, 20-36. [DOI:10.1016/j.ecotra.2016.12.001]
5. Börjesson, M., Fung, C. M., Proost, S. & Yan, Z. (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, 111, 326-34 [DOI:10.1016/j.tra.2018.03.023]
6. De Borger, B., Proost, S., (2001). Reforming Transport Pricing in the European :union:: A Modelling Approach, Edward Elgar Publisher, Inc, USA. [DOI:10.4337/9781781009956]
7. De Borger, B., Proost, S. (2015). The political economy of public transport pricing and supply decisions. Econ. Transp, 4 (1-2), 95-109. [DOI:10.1016/j.ecotra.2015.05.002]
8. De Palma, A., Kilani, M., Proost, S. (2015). Discomfort in mass transit and its implication for scheduling and pricing. Transp. Res. Part B: Methodol, 71, 1-18. [DOI:10.1016/j.trb.2014.10.001]
9. Furth, P., Rahbee, A. (2000). Optimal bus stop spacing through dynamic programming and geographic modeling. Transp. Res. Record: J. Transp. Res. Board, 1731, 15-22. [DOI:10.3141/1731-03]
10. Glaister, S., & J.J. Collings, J., (1978). Maximization of passenger miles in theory and practice. Journal of Transport Economics and Policy, 12 (3),304-321
11. Gómes-Lobo, A. (2014). Monopoly, Subsidies and the Mohring Effect: A synthesis and an extension. Transport Reviews, 34 (3), 297-315 [DOI:10.1080/01441647.2014.902871]
12. Goodwin, P, B., (1992). A review of new demand elasticities with special reference to short and long run effects of price changes. Journal of Transport Economics and Policy, 26 (2),155-169
13. Jansson, J. O., Holmgren, J., & Ljungberg, A. (2015). Pricing public transport services, In: Handbook of research methods and applications in transport economics and policy, Edward Elgar Publishing, 260-308. [DOI:10.4337/9780857937933.00022]
14. Jara-Díaz, S., Gschwender, A. (2003a). From the single line model to the spatial structure of transit services: corridors or direct? J. Transp. Econ. Policy, 37 (2), 261-277.
15. Jara-Díaz, S., Gschwender, A. (2003b). Towards a general microeconomic model for the operation of public transport. Transp. Rev, 23 (4), 453-469. [DOI:10.1080/0144164032000048922]
16. Kilani, M., Proost, S., van der Loo, S. (2014). Road pricing and public transport pricing reform in Paris: complements or substitutes? Econ. Transp, 3, 175-187. [DOI:10.1016/j.ecotra.2014.04.003]
17. Kraus, M. (1991). Discomfort externalities and marginal cost transit fares. J. Urban Econ, 29, 249-259. [DOI:10.1016/0094-1190(91)90018-3]
18. Kumar Sen, A., Tiwari, G., Upadhyay, V., (2010). Estimating marginal external costs of transport in Delhi. Transport Policy, 17, 27-37 [DOI:10.1016/j.tranpol.2009.09.003]
19. Li, H., Bertini, R. (2009). Assessing a model for optimal bus stop spacing with high-resolution archived stop-level data. Transp. Res. Record: J. Transp. Res. Board 2111, 24-32. [DOI:10.3141/2111-04]
20. Mohring, H. (1972) Optimization and Scale Economies in Urban Bus Transportation. American Economic Review, 62 (4), 591-604
21. Monchambert, G., de Palma, A. (2014). Public transport reliability and commuter strategy. J. Urban Econ, 81, 14-29. [DOI:10.1016/j.jue.2014.02.001]
22. Nash. A.C. (1978). Management objectives, fares and service levels in bus transport. Journal of Transport Economics and Policy, 12 (1),70-85
23. Nazemi, A, Azhdar, R, Feshari, M, Nouri, N. (2017) Effect of Changes Fare on Commuter's Behavior Change, a Case Study of Tehran Subway. Journal of Economic Modeling Research, 26. 89-110(In Persian) [DOI:10.18869/acadpub.jemr.7.26.89]
24. Nilsson J., E., Ahlberg J., Pyddoke, R. (2014). Optimal supply of public transport- subsidizing production or consumption or both? Working paper, Center for Transport Studies, Sweden.
25. Oum, Tae Hoon, W. G. Waters II, and Jong-Say Yong. (1992). Concepts of price elasticities of transport demand and recent empirical estimates. Journal of Transport Economics, 26 (2), 139-154
26. Parry, I.W.H., Small, K.A. (2009). Should urban transit subsidies be reduced? Am. Econ. Rev, 99 (3), 700-724. [DOI:10.1257/aer.99.3.700]
27. Pedersen, P, A. (2003). On the optimal fare policies in urban transportation. Transportation Research Part B, 37,423-435 [DOI:10.1016/S0191-2615(02)00022-X]
28. Purpir, M., Arab Mazar, A. (1395). Optimal pricing of urban transportation (Case Study): Isfahan City, M.Sc., Department of Economics, Faculty of Economics and Political Science, Shahid Beheshti University(In Persian)
29. Samuelson, P, A. (1986). Economics. Mac Grow-Hill, New York, 12th edition.
30. Shakiba Moghaddam, M. (2009). Managing local organizations and municipalities. Tehran: Mir Publishing(In Persian)
31. Sobhanian, SA, Aghajani Memar, A. Tutunchi, S, (2018). Tax on Capital Gains of Housing Estate; a Sustainable Source of Income for Municipalities and an Appropriate Tool to Control Speculation in the Housing Market. Journal of Urban Economics and Management, 6 (21) :83-96(In Persian) [DOI:10.29252/iueam.6.21.83]
32. Tehran Municipal Bus Company Website; http://bus.tehran.ir/Default.aspx?tabid=192(In Persian)
33. Tirachini, A. (2014). The economics and engineering of bus stops: spacing, design and congestion. Transp. Res. Part A: Policy Pract, 59, 37-57. [DOI:10.1016/j.tra.2013.10.010]
34. Tirachini, A., Hensher, D.A., Bliemer, M.C.J. (2014a). Accounting for travel time variability in the optimal pricing of cars and buses. Transportation, 41 (5), 947-971. [DOI:10.1007/s11116-014-9515-8]
35. Tirachini, A., Hensher, D.A., Rose, J.M. (2013). Crowding in public transport systems: effects on users, operation and implications for the estimation of demand. Transp. Res. Part A: Policy Pract, 53, 36-52. [DOI:10.1016/j.tra.2013.06.005]
36. Tirachini, A., Hensher, D.A., Rose, J.M. (2014b). Multimodal pricing and optimal design of urban public transport: The interplay between traffic congestion and bus crowding. Transp. Res. Part B: Methodol, 61, 33-54. [DOI:10.1016/j.trb.2014.01.003]
37. Van Nes, R., Bovy, P. (2000). Importance of objectives in urban transit network design. Transp. Res. Record: J. Transp. Res. Board. [DOI:10.3141/1735-04]
38. Viton, P., (1980). Equilibrium short-run-marginal-cost pricing of a transport facility: the case of the San Francisco bay bridge. J. Transp. Econ. Policy, 14 (2), 185-203.
39. Zaroki,S. (2019) Effect of Government Size on Environmental Pollution in Iran. Journal of Economic Modeling Research, 36. 195-234(In Persian) [DOI:10.29252/jemr.9.36.195]
40. Zenuz, B., (2009). Financing municipalities: The theoretical foundations of municipal revenue system. Urban Economics, 2. 4-27(In Persian)
Send email to the article author
| Rights and permissions | |
 | This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |
