OPTIMAL BUS SUBSIDY AND CROSS SUBSIDY WITH A LOGIT CHOICE MODEL

This paler investigates the impact on bus subsidy analysis of using a probabilistic (logit) choice model predicting random and planned user behaviour. The paper addresses the question of the conventional negati ve relationship between optimal unit subsidy and route patronage. The paper shows that this result continues to hold under a legit model. Th ere can also be rapid increases in total subsidy for small increases i n patronage.