Abstract
THIS PAPER ATTEMPTS TO IDENTIFY THE FACTORS WHICH LEAD AN INDIVIDUAL USER TO BUY A PASS, SO AS TO PROVIDE INFORMATION FOR OPERATORS ASSESSING ADVANTAGES AND DISADVANTAGES OF INTRODUCING OR CONTINUING A TRANSIT PASS. THE FIRST PART OF THE PAPER DEVELOPS SOME OF THE MICROECONOMIC REASONS FOR INDIVIDUAL DEMAND FOR TRANSIT PASSES. THE MODEL DEVELOPED NOT ONLY PROVIDES THE BASIS FOR A SUBSEQUENT EMPIRICAL ANALYSIS, BUT IN ITSELF SUGGESTS THAT A TRANSIT PROPERTY IS LIKELY TO INCREASE RIDERSHIP BUT REDUCE REVENUE THROUGH ISSUANCE OF TRANSIT PASSES. THE SECOND PART OF THE PAPER PRESENTS AN ECONOMETRIC MODEL OF INDIVIDUAL CHOICE ON PURCHASE OF A PASS.