Fare evasion in public transport: How does it affect the optimal design and pricing?

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dc.article.number102803
dc.catalogadorjlo
dc.contributor.authorRamos Guerrero, Raúl Alfonso
dc.contributor.authorSilva Montalva, Hugo Emilio
dc.contributor.otherCEDEUS (Chile)
dc.date.accessioned2023-11-30T18:07:45Z
dc.date.available2023-11-30T18:07:45Z
dc.date.issued2023
dc.description.abstract© 2023 Elsevier LtdFare evasion produces significant revenue losses in public transport systems. Recent research has found that low service quality and high prices are important determinants of fare evasion. However, the economic literature that studies the optimal public transport provision has overlooked the phenomenon. We develop a demand model of horizontal differentiation to investigate how fare evasion affects the design and pricing of public transport that maximizes utilitarian social welfare. We show analytically that fare evasion can create incentives to reduce public transport prices and improve service quality, putting upward pressure on its subsidization. We perform numerical simulations and sensitivity analysis to quantify the impact of these incentives on the public transport provision. These simulations confirm that the incentive to reduce fare evasion can lead to an optimal design and price that requires subsidies.
dc.description.funderANID FONDAP
dc.description.funderANID FONDECYT
dc.description.funderEuropean Union
dc.format.extent19 páginas
dc.fuente.origenSIPA
dc.identifier.doi10.1016/j.trb.2023.102803
dc.identifier.issn0191-2615
dc.identifier.scopusidSCOPUS_ID:85168422093
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/75444
dc.information.autorucEscuela de Ingeniería; Ramos Guerrero, Raúl Alfonso; S/I; 1070564
dc.information.autorucEscuela de Ingeniería; Silva Montalva, Hugo Emilio; 0000-0003-0307-2686; 1020528
dc.language.isoen
dc.nota.accesoContenido parcial
dc.pagina.final19
dc.pagina.inicio1
dc.publisherElsevier Ltd
dc.revistaTransportation Research Part B: Methodological
dc.rightsacceso restringido
dc.subjectDesign
dc.subjectFare dodging
dc.subjectFare evasion
dc.subjectInspection
dc.subjectPricing
dc.subjectPublic transport
dc.subjectSubsidy
dc.subjectWelfare
dc.titleFare evasion in public transport: How does it affect the optimal design and pricing?
dc.typeartículo
dc.volumen176
sipa.codpersvinculados1070564
sipa.codpersvinculados1020528
sipa.trazabilidadSCOPUS;2023-09-03
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