PRICE ELASTICITY OF DEMAND AS A DETERMINANT SHAPING FARES IN URBAN TRANSPORT

  • Katarzyna Hebel
  • Marcin Wołek
  • Olgierd Wyszomirski

Abstract

The aim of this paper is to present the price elasticity of demand as a determinant of tariff formation in urban transport. The basis of the article is the thesis that the price elasticity of demand for urban transport services determines the formation of current tariffs in this transport activity.


The article specifies the conditions for shaping tariffs in urban transport by dividing them into economic, legal, social, transport and technological. The specificity of price elasticity of demand for urban transport services has also been characterized, emphasizing the role of cross-elasticity. The main determinants of the price elasticity of demand for urban transport services have also been identified.


Theoretical aspects have been verified by analyzing changes in the volume of demand and revenues of urban transport services of Urban Transport Board in Gdynia in the years 2010–2016. The current trends in tariff developments in Polish cities, particularly with regard to the introduction of a zero tariff have been painted out.

Published
Feb 7, 2019
How to Cite
HEBEL, Katarzyna; WOŁEK, Marcin; WYSZOMIRSKI, Olgierd. PRICE ELASTICITY OF DEMAND AS A DETERMINANT SHAPING FARES IN URBAN TRANSPORT. Transport Economics and Logistics, [S.l.], v. 75, p. 115-125, feb. 2019. ISSN 2657-6104. Available at: <http://www.znetil.ug.edu.pl/index.php/etil/article/view/242>. Date accessed: 21 nov. 2019.
Section
Transportation services market