Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207234 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7843
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We consider a multi-service transportation system in which passengers are heterogeneous along two dimensions, namely ideal departure time and value of time, leading to both horizontal and vertical differentiation. We investigate the behavior of passengers, and assess how service pricing and scheduling affect their travel choices and welfare. We show that this depends, first, on whether passengers are uninformed or informed about the timetable of services, supplied at different prices, upon arrival at the station. Besides, given the information passengers hold, it also depends on their (individual-specific) value of time. The market segmentation results accordingly, and is found to be finer, in general, when passengers are informed. Our analysis offers policy-makers a scientifically founded tool to make sensible decisions, based on the exact identification of those who would gain and those who would lose from policy changes. The analysis further highlights the potential benefits of information, and points to the importance of facilitating information accessibility to passengers.
Subjects: 
travel demand
service scheduling
market segmentation
targeted policy-making
impact of information
JEL: 
D01
L91
L98
Document Type: 
Working Paper
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