On the Welfare Optimal Policies in Demand Responsive Transportation and Shared Taxi Services

Jani-Pekka Jokinen*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

This paper presents a model addressing welfare optimal policies, and unique cost structures of demand responsive transportation and shared taxi services. In shared rides, passengers cause external travel time costs for other passengers due to route changes and additional stops. Optimal pricing and trip production policies are studied in three situations: 1) when the fare structure is flat rate; 2) when fares vary according to distance; and 3) when variable travel time promises are considered. The interpretation of the results highlights the fundamental differences between demand responsive transportation and conventional bus and taxi services from the viewpoint of transport policy.

Original languageEnglish
Pages (from-to)39-55
Number of pages17
JournalJOURNAL OF TRANSPORT ECONOMICS AND POLICY
Volume50
Publication statusPublished - Jan 2016
MoE publication typeA1 Journal article-refereed

Keywords

  • MODEL
  • FARE
  • taxi services

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