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YANG Fan, YANG Qi, ZHANG Jun, XI En-chong. Public transit pricing and optimal government compensation models[J]. Journal of Traffic and Transportation Engineering, 2010, 10(2): 110-115. doi: 10.19818/j.cnki.1671-1637.2010.02.020
Citation: YANG Fan, YANG Qi, ZHANG Jun, XI En-chong. Public transit pricing and optimal government compensation models[J]. Journal of Traffic and Transportation Engineering, 2010, 10(2): 110-115. doi: 10.19818/j.cnki.1671-1637.2010.02.020
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Public transit pricing and optimal government compensation models

doi: 10.19818/j.cnki.1671-1637.2010.02.020
  • 1.

    School of Economics and Management, Chang'an University, Xi'an 710064, Shaanxi, China

  • 2.

    School of Automobile, Chang'an University, Xi'an 710064, Shaanxi, China

More Information
  • Author Bio:

    YANG Fan(1983-), female, doctoral student, +86-29-86522252, yangfan@chd.edu.cn

    XI En-chong(1946-), male, professor, +86-29-82336196, xiench@chd.edu.cn

  • Received Date: 2009-11-28
  • Publish Date: 2010-04-25
    Abstract
  • In order to improve public transit pricing and government compensation mechanism, three potential economic principles such as increasing returns to scale, positive externalities and second-best theory were elaborated. Three models for pricing and calculating optimal compensation were established. The application of public transit pricing and compensation models was studied with Xi'an as an example. Analysis result indicates that the pricing and compensation model of marginal cost based on increasing returns to scale is identified as best social welfare and being the most practical, another model of supply-demand balance based on positive externalities can get optimum corporate welfare, and the model of Ramsey pricing and compensation based on second-best theory is better for explaining principles. The government compensation amount of Xi'an in 2009 is calculated at 978 million yuan, the outcome basically agrees with the actual demand, and the models are effective.

     

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