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Optimizing a desirable fare structure for a bus-subway corridor.

Bing-Zheng Liu1, Ying-En Ge2, Kai Cao3

  • 1School of Transportation and Logistics, Faculty of Infrastructure Engineering, Dalian University of Technology; Dalian, Liaoning Province, China.

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|October 6, 2017
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Summary
This summary is machine-generated.

Optimizing public transit fares with equity in mind, this study found that combined distance- and area-based fare strategies significantly boost social welfare and passenger demand compared to flat fares.

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Area of Science:

  • Transportation Science
  • Operations Research
  • Public Policy

Background:

  • Public transit fare structures significantly impact social welfare and passenger demand.
  • Existing fare strategies often fail to adequately account for equity factors like travel distance and comfort.
  • Optimizing fare structures is crucial for enhancing transit service efficiency and user satisfaction.

Purpose of the Study:

  • To develop and optimize a public transit fare structure that incorporates equity considerations, specifically travel distance and comfort level.
  • To compare the effectiveness of distance-based, area-based, and combined fare strategies against a flat fare system.
  • To maximize social welfare and passenger demand through an equitable fare system.

Main Methods:

  • Formulation of the fare optimization problem as a bi-level program, with the upper level maximizing social welfare and the lower level modeling traveler choice behavior.
  • Utilizing a variable-demand stochastic user equilibrium assignment model for the lower-level problem.
  • Employing a genetic algorithm to solve the bi-level program and the method of successive averages for the lower-level model.

Main Results:

  • All three differential fare strategies (distance-based, area-based, combined) outperformed the flat fare strategy in enhancing social welfare.
  • The combined fare strategy, integrating both distance and area-based components, yielded the highest social welfare and passenger demand.
  • Increased incorporation of equity factors into fare strategies leads to more desirable outcomes.

Conclusions:

  • Differential fare strategies, particularly the combined approach, are superior to flat fares for optimizing public transit systems.
  • Fare structures that account for travel distance and comfort level enhance both social welfare and passenger demand.
  • The study provides a framework for developing more equitable and efficient public transit fare systems.