Optimal Fares for Public Transport
Appeared in: Operations Research Proceedings 2005. H.-D. Haasis et al. (eds.) Springer 2006, 591-596
| 05-35 | Ralf Borndörfer, Marika Neumann, Marc E. Pfetsch
Optimal Fares for Public Transport Appeared in: Operations Research Proceedings 2005. H.-D. Haasis et al. (eds.) Springer 2006, 591-596 | |
Abstract:The 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.
Keywords: fare planning,
demand function,
discrete choice model
MSC: 90B20, 91B74