A price resistance model for personal travel

Abstract

Metcalf A. E., Markham J. and Feeney B. P. (1976) A price resistance model for personal travel, Reg. Studies 10, 79–88. This paper describes the development of a price resistance model for personal travel. The model provides a comprehensive and flexible mechanism for assessing the effect on the demand for travel for any particular mode or modes of cost changes, such as changes in bus fares, petrol prices, parking charges, etc. Both the absolute change in the overall demand for travel associated with any change in cost (considered in terms of both time and money) for a specific mode, and the competitive adjustments in demand between modes as a result of the change are taken into account in the model.

The results of a case study on the effect of bus fare increases shows that the models predictive ability is good and that it is a realistic and robust tool.

Keywords:

• Price resistance
• Income and substitution effects
• Clawson curves
• Modal split
• Econometric calibration