Optimisation of transit fares: a multimodal approach based on system and external costs

Abstract

In this paper a model for the optimisation of transit fares is proposed and tested on a trial network. This model considers a multimodal transportation system under the assumption of elastic demand for simulating the impacts of fare policies on modal split. The model takes into account all system and social costs: (transit and road) user costs, firm costs and external costs. First tests on a trial network show the non-negligible impacts of transit fare design on the overall transportation system conditions and on social costs.