The Off-peak Demand for Train Kilometres and Train Tickets. A Microeconometric Analysis

In this paper the authors model the demand for train kilometres with a disaggregate structural demand model, thereby recognising the fact that consumers have to make a simultaneous choice for this demand and for the type of ticket with which they want to travel. The model is in line with microeconomic theory, which implies that the choice of ticket type is closely linked to the indirect utlility function. Special attention has been paid to the possibility that individuals do not buy the ticket that would have been most advantageous, given their actual demand for train kilometres. A result implies that the average traveller behaves as if the price of a reduction card were more expensive than it actually is, which not only has considerable implications for the railway company whose aim is to maximise its revenues, but also for the government whose aim is to stimulate the use of public transport.