The Effect of Fare Reductions on Public Transit Ridership
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1974-05-01
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Abstract:The study was undertaken to determine the effects of various reduced fare programs on transit ridership. A listing of all reduced fare programs in North America is provided. The concept of fare elasticity was defined and determined for the various programs. Empirical evidence was obtained and analyzed from senior citizen programs, reduced base fare programs, free fare programs and promotional programs. It was found that reduced fare programs produce significant ridership increases. Senior citizen transit demand was found to be more elastic than overall ridership demand. Off-peak travel is more elastic than peak hour travel. Even with these significant ridership increases, reduced fare programs result in a revenue loss. These programs have been successful in achieving their particular social and environmental objectives.
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