Fair ticket pricing in public transport as a constrained cost allocation game

• Published in: Annals of operations research Vol. 226; no. 1; pp. 51 - 68
• Main Authors: Borndörfer, Ralf, Hoang, Nam-Dũng
• Format: Journal Article
• Language: English
• Published: New York Springer US 01.03.2015; Springer; Springer Nature B.V
• Subjects: Accounting and auditing; Allocation (Accounting); Allocations; Business and Management; Combinatorics; Constraints; Cost allocation; Cost recovery; Distribution costs; Economic aspects; Game theory; Integer programming; Marketing; Maximization; Methods; Networks; Operations research; Operations Research/Decision Theory; Prices; Pricing; Pricing policies; Public transportation; Studies; Theory of Computation; Tickets; Netherlands; 91-08; (; Constrained cost allocation games; Least core; 90C90; Fair ticket prices; Nucleolus; 91A80; ,

Ticket pricing in public transport usually takes a welfare maximization point of view. Such an approach, however, does not consider fairness in the sense that users of a shared infrastructure should pay for the costs that they generate. We propose an ansatz to determine fair ticket prices that combi...