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Optimal Fares for Public Transport

Please always quote using this URN: urn:nbn:de:0297-zib-8698
  • The \emph{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 d iscrete 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.

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Author:Ralf BorndörferORCiD, Marika Neumann, Marc PfetschORCiD
Document Type:ZIB-Report
Tag:demand function; discrete choice model; fare planning
MSC-Classification:90-XX OPERATIONS RESEARCH, MATHEMATICAL PROGRAMMING / 90Bxx Operations research and management science / 90B20 Traffic problems
91-XX GAME THEORY, ECONOMICS, SOCIAL AND BEHAVIORAL SCIENCES / 91Bxx Mathematical economics (For econometrics, see 62P20) / 91B74 Models of real-world systems
Date of first Publication:2005/08/01
Series (Serial Number):ZIB-Report (05-35)
Published in:Appeared in: Operations Research Proceedings 2005. H.-D. Haasis et al. (eds.) Springer 2006, 591-596
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