Citation

Kidder AE, Sen L, Amedee G, McKelvey D. Transp. Res. Rec. 1977; 660: 34-38.

Copyright

(Copyright © 1977, Transportation Research Board, National Research Council, National Academy of Sciences USA, Publisher SAGE Publishing)

DOI

unavailable

PMID

unavailable

Abstract

Data from 18 systems (both demand-responsive and fixed routes, public and private, profit and non-profit) in cities ranging in population from 25,000 to 500,000 and representing all regions of the United States was collected and analyzed to determine costs per passenger kilometer, per vehicle kilometer and per passenger trip. The purpose of the research was to determine whether or not the theory of U-shaped cost curves (i.e., up to a point, increased volume will result in lower per unit cost) applies to these transportation systems so that public policy about the systems may be changed if necessary. (Current policy tends to encourage proliferation of small-scale units of operation.) The study suggests that, on a cross-sectional basis, transportation programs for the elderly and the handicapped appear to operate at the lowest average unit costs at scales of operation that are considerably larger than those of most systems now operating under federal assistance programs. The data suggest that management costs can be better spread over systems that cover larger geographical areas and deliver more passenger kilometers of service. Although these findings do not result in causal relations, they do suggest that more research is needed on the sources of variations in cost.