The Effect of Public Transport Pricing Policy: Experimental Evidence
Pre-print, Working paper: We investigate the impact of different public transport pricing schemes on daily commuting habits. Psychological inertia, car stickiness, complexity aversion, or skewed perception of prices are expected to influence decisions. We build a controlled experiment, where participants make transport decisions and face various public transport tariffs. Our findings indicate that players are rational as they reach the Nash predictions of our model, but cognitive biases inherent to users are also present. Peak/offpeak and two-part tariffs prove to be more successful in encouraging public transit use than flat fare subscriptions, possibly due to a preference for flexibility and the ability to take past experiences into account (congestion and incident) in future travel choices. Thus, this paper suggests that well designed pricing strategies are useful tools to promote public transit use and reduce road congestion.
Author(s)
Philippe Gagnepain, Sébastien Massoni, Alexandre Mayol, Carine Staropoli
Date of publication
- 2024
Keywords JEL
Keywords
- Public transport pricing
- Private car
- Congestion
- Experiment
Internal reference
- PSE Working Papers n°2024-17
Pages
- 35 p.
URL of the HAL notice
Version
- 1