| Author | dc.contributor.author | Basso Sotz, Leonardo | |
| Author | dc.contributor.author | Jara Díaz, Sergio | es_CL |
| Admission date | dc.date.accessioned | 2010-11-22T12:27:15Z | |
| Available date | dc.date.available | 2010-11-22T12:27:15Z | |
| Publication date | dc.date.issued | 2010-09 | |
| Cita de ítem | dc.identifier.citation | JOURNAL OF TRANSPORT ECONOMICS AND POLICY Volume: 44 Pages: 365-372 Part: Part 3 Published: SEP 2010 | en_US |
| Identifier | dc.identifier.issn | 0022-5258 | |
| Identifier | dc.identifier.uri | https://repositorio.uchile.cl/handle/2250/125451 | |
| Abstract | dc.description.abstract | In this journal, van Reeven (2008) develops a model aimed at showing that scale economies on users' time costs would not provide a justification for public transport subsidies. He claims that a profit-maximising operator allowed to take the demand effects of its pricing into account would offer a frequency f(pi) at least as high as a welfare-maximising one f*, and with no welfare losses. We show that his result depends crucially on a strong assumption of demand. Introducing a slight modification to make it more realistic, we show: (i) f* > f(pi), (ii) welfare losses emerge under profit-maximisation, (iii) subsidies are required for first-best operation. Thus, the Mohring effect is a valid argument for subsidisation. | en_US |
| Patrocinador | dc.description.sponsorship | This research was partially funded by FONDECYT-Chile, Grant 1080140, and by the
Millennium Institute ‘Complex Engineering Systems’, Grants ICM: P-05-004-F and
CONICYT: FB016. | en_US |
| Lenguage | dc.language.iso | en | en_US |
| Publisher | dc.publisher | UNIV BATH, JRNL OF TRANSPORT ECON & POL CLAVERTON DOWN | en_US |
| Keywords | dc.subject | SERVICES | en_US |
| Título | dc.title | The Case for Subsidisation of Urban Public Transport and the Mohring Effect | en_US |
| Document type | dc.type | Artículo de revista | |
