THE AUTHOR COMMENTS ON THE ARTICLE BY L B DOXSEY PUBLISHED IN THE JANUARY 1984 EDITION OF THE JOURNAL OF TRANSPORT ECONOMICS AND POLICY (SEE IRRD ABSTRACT 279282). DATA FROM THE MARTA (ATLANTA) SYSTEM WAS ANALYSED AFTER A REVISION OF FARES FOLLOWING THE INTRODUCTION OF TRAVELCARDS. IT IS SUGGESTED THAT THE DATA USED ARE VERY LIMITED AND THAT THE DEMAND CURVE ASSUMED IN THE ANALYSIS COULD BE A POOR REPRESENTATION OF INDIVIDUAL RESPONSE TO PRICE. RESPONSE TO PRICE CHANGE NEED NOT NECESSARILY BE SYMMETRICAL; TRAVELCARDS COULD BE INTRODUCED AT A LOW INITIAL PRICE TO GAIN MARKET PENETRATION AND THEN FOLLOWED BY A PRICE INCREASE ENABLING SOME OF THE TRAFFIC GAINED TO BE MAINTAINED AT A HIGHER PRICE. INITIAL ANALYSIS OF THE LONDON TRAVELCARD SCHEME SUGGESTS A HIGHER BENEFIT THAN NORMALLY EXPECTED. ADDITIONAL DATA FROM OTHER SURVEYS IN THE USA IS INCLUDED IN THE REJOINDER BY L B DOXSEY TO REINFORCE HIS PRIMARY CONCLUSION THAT THE INTRODUCTION OF UNLIMITED USE TRAVELCARDS LEADS TO LOWER FARE REVENUE THAN WOULD BE OBTAINED BY THE SAME FARE STRUCTURE WITHOUT THEM. HE CLAIMS THAT WHITE IN HIS COMMENT HAS CONFUSED THE CURVES SHOWING THE CHOICE OF PAYMENT METHODS WITH THE DEMAND FOR TRANSIT. HE EXPECTS THAT SYSTEMS OFFERING PASSES WILL BE FOUND TO BE FINANCIALLY DISADVANTAGEOUS ALTHOUGH THIS MAY BE OFFSET BY SYSTEM PROMOTION OR PROVISION OF CONCESSIONARY FARES.
Abstract