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Authordc.contributor.authorBasso Sotz, Leonardo 
Authordc.contributor.authorJara Díaz, Sergio es_CL
Admission datedc.date.accessioned2010-11-22T12:27:15Z
Available datedc.date.available2010-11-22T12:27:15Z
Publication datedc.date.issued2010-09
Cita de ítemdc.identifier.citationJOURNAL OF TRANSPORT ECONOMICS AND POLICY Volume: 44 Pages: 365-372 Part: Part 3 Published: SEP 2010en_US
Identifierdc.identifier.issn0022-5258
Identifierdc.identifier.urihttp://repositorio.uchile.cl/handle/2250/125451
Abstractdc.description.abstractIn 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
Patrocinadordc.description.sponsorshipThis 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
Lenguagedc.language.isoenen_US
Publisherdc.publisherUNIV BATH, JRNL OF TRANSPORT ECON & POL CLAVERTON DOWNen_US
Keywordsdc.subjectSERVICESen_US
Títulodc.titleThe Case for Subsidisation of Urban Public Transport and the Mohring Effecten_US
Document typedc.typeArtículo de revistaen_US


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