IMPACT OF FARES ON TRANSIT USAGE

The paper describes data from cities which have experienced fare increases. Citing New York as only one of several examples, fare increases of 10 percent per annum have occurred during the past decade. However, it is shown that such increases have been relatively modest, and the fare has even been stable over time when expressed in constant dollars. This situation is not unique to New York; similar patterns are reported elsewhere and are noted in the paper. The expected impact of lost patronage should be more severely experienced on bus systems in those areas where both bus and rail exist. This premise is supported in Chicago but not totally so in New York where there has been little difference between the impact on buses and rail rapid transit. Decreases in fare have been found to increase patronage in North America.