This paper focuses on welfare optimal transport policies in a public transport market where positive externalities from the route supplier to the travellers as well as negative externalities within group of consumers exist. Additionally, there might be capacity constraints of two types. Firstly,...

A theoretical model is adopted in order to discuss optimal fare and optimal quality of supply schemes for a transport operator. The analysis shows how fare and quality of supply are related to travel distance and to the transport operator's emphasis on profit versus consumer surplus. Under...