SERVICE UNRELIABILITY AND BUS SUBSIDY

This paper addresses the link between the degree of unreliability of b us services and the level of optimal bus subsidy. With unreliability i nfluencing user cost, and user cost being a key determinant of optimal bus subsidy, it follows that there is a link between service unreliab ility and optimal subsidy. Service unreliability is shown to have quit e a significant influence on optimal subsidy. The impact is rather sma ll in cases where a single type of user behaviour (random or planned) occurs. In contrast, the impact is much more significant when a legit model is used to predict choice between the two types of user behaviou r. (C) 1998 Elsevier Science Ltd. All rights reserved.