Are users better-off with new transit lines?

Abstract : This paper studies the entry of new competitors in public transport like long distance busses that compete with rail. A stylized model is used that analyzes the addition of a new more direct line in an existing network. We show that the introduction of the new line is only beneficial if there are relatively many users that want to use the new direct line. Our result raises serious concerns with respect to the decentralized management of transit systems.
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Moez Kilani, André de Palma, Stef Proost. Are users better-off with new transit lines?. 2016. ⟨hal-01282877⟩

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