A decision model for evaluating transit pricing policies

Abstract

Decision models that emphasize the relationship between control variables such as transit fares and performance measures like revenue and ridership can be of significant value to the transit manager's decision-making process. Since transit pricing has become a political issue, any transit fare model needs to examine the equity implications of proposed fare policies. To this end, the transit pricing decision model presented in this paper not only provides information on aggregate quantities such as revenue and ridership but more importantly, through use of the micro-simulation technique, facilitates analysis of the impact that various fare policies would have on selected groups of riders. The potential usefulness of the model is illustrated through an application to evaluate the impact of distance-based fare policies. The design of the model and supporting computer programs are, however, flexible enough to test a variety of fare structures and permit the model to be customized to a specific user's needs and data constraints.