Quote:
Originally Posted by fusili
Sorry to belabour the point, but this is a perverted metric. You want to disincent (is that even a word), those who burden the system the most, whether they are driving or taking transit. The metric should be based on what the total burden is on the transportation system per person, not what the differential is between taking transit and driving for each person.
That would be akin to (and this is probably a very convoluted and bad analogy) a situation where you are paying for everyone's lunch. One person wants a salad and another wants a steak. The person getting a steak can downgrade to chicken, and the salad can downgrade to a soup. If you had to choose which one downgraded, and gave them a small reward, who would you choose? Game theory says it is better to get the steak person to downgrade because the differential is greater, which only makes sense. But that is where game theory falls apart: the initial decision is assumed. You are basically rewarding expensive behavior. Would you say the steak/chicken person is somehow less of a burden than you that the salad/soup person because the cost difference between steak and chicken is greater than salad and soup? That sounds crazy to me.
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If you believe cost will change behaviour on transit you should also believe cost would change behaviour on traffic. The major cost in traffic is time. Adding a marginal traffic user can have a severe detrimental effect on traffic, slowing down everyone by a massively disproportional amount compared to the effect of an average traffic user.
The marginal transit user presents a burden when the system is near capacity for sure (slower boardering times mostly) but the effect on average users is very small. The effect is no where near the effect of a marginal user on traffic.
This creates a huge price mismatch that economics can help solve. If a road user (all examples during congestion) will cause a cost over 10 kilometers, or a road user will cause a cost over 2, which one will create the most cost (a negative externality)? The 10 kilometer user.
Now think of transit users outside of traffic, taking the same trips. The main point of congestion is boarding, and the user's externality on boarding is only applied once, no matter how long the trip. At the point of new users not being able to board the train, only those new users suffer, not everyone already on the train. While the cost to the user left behind is high, the average cost across users is much lower compared to congestion in a traffic system. The longer trip certainly causes a larger negative to the system, but proportionally the negative is quite small.
Moving on to implementing demand control fares on each system, which one makes sense to control demand on? The one where demand hurts everyone while hurting the demander the same amount? Or the one where demand hurts almost exclusively those demanding it?
Now think about a system that imposes costs on both traffic and transit to reduce congestion. In a traffic system, the cost causes a direct benefit to all users of the system. In transit the benefit is very concentrated amongst a few while the cost falls on almost all.
Putting the two together since even in Calgary the modal share very heavily favours the car, and for every transit trip there is a direct subsidy from taxpayers at large (I am talking only operational side here) equal to the transit fare at minimum, where should benefits fall in our system? Should benefits go to those providing the minimal net welfare gain to society at large, or should they go to those providing the maximum welfare gain?
Fortunately we don't need to control demand using price like Washington DC does due to our build form. The city's structure solves this economic problem for us by giving those with the highest positive externalities the likelyhood that they will not be hit by extremely high individual transit imposed costs.
Not saying it is equitable, just that it is optimal.