Models for fare planning in public transport

The optimization of fare systems in public transit allows to pursue objectives such as the maximization of demand, revenue, profit, or social welfare. We propose a nonlinear optimization approach to fare planning that is based on a detailed discrete choice model of user behavior. The approach allows to analyze different fare structures, optimization objectives, and operational scenarios involving, e.g., subsidies. We use the resulting models to compute optimized fare systems for the city of Potsdam, Germany.

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