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Summary of IOT Publications
| Title | Revisions of Fare Regulations on the Highway Motor Carrier Industry |
|---|---|
| Dept | IOT |
| Year | 1998 |
| Summary | This research introduces "gross profit rate" method to substitute currently used "average cost-plus" method in determining the base fares for highway motor carrier industry. Base fare as well as zonal and special route differential fare formulas are derived. Numerical examples are analyzed using theoretical and empirical data. The results indicate that gross profit rate (GPR) pricing is superior to average cost-plus pricing primarily because GPR not only simplifies the fare reviewing process (only direct cost items need to be examined) but enhances the accuracy of cost auditing; therefore, it is supported by most of the motor carriers. Based on the GPR pricing method, a revision of Fare Regulations for the Highway Motor Carrier Industry is carried out. It is expected that, through such revised fare regulations, review of bus transit fares can become more reasonable, fair, and prompt. |
| Post date | 1998-02-02 |
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