The factors which affect transit fare policy can be grouped into three categories: institutional, demand, and pricing rationale. Institutional factors include fare trends, types of fares, fare collection techniques, and the role and objectives of the various groups involved in pricing transit. Demand factors are concerned especially with the responsiveness of transit users and potential users to changes in fares, in transit service characteristics, and in the perceived price of urban automobile trips. Pricing rationale or cost factors are concerned particularly with the cost characteristics of the production of transit services. This report identifies the issues with which any fare policy must deal, and presents information that will aid individual transit operators to resolve those issues in their own operations.


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