Working Papers (2003)

8, 2003 The Economic Rationale for Integrated Tariffs in Local Public Transport
autori

Carla MARCHESE
Dipartimento di Politiche Pubbliche e Scelte Colletive (POLIS) - Università del Piemonte Orientale

  In this paper it is shown that integrated tariffs can be used to extract the consumer’s surplus when there are a lot of connections supplied, so that a law of large number applies in the estimation of the consumer’s willingness to pay. The time validity limitations of tickets are explained by a nonlinear pricing approach. Links between optimal pricing in local public transport and network characteristics are highlighted.

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