Demand Functions, Behavioral Analysis, and Cost Effectiveness in Urban Transportation

Published Online:https://doi.org/10.1287/trsc.9.2.139

The sensitivity of cost-benefit assessments to variations in demand for public transportation is examined. The analysis, based upon detailed computer simulations of urban transportation systems, indicates some major changes in costs and benefits for different demand conditions. However, the relative standing of new systems of urban transportation were not significantly affected. Also discussed are requirements for improved modeling of demand.

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