A monopolist in public transport may oversupply frequency relative to the social optimum, as van Reeven (2008) demonstrates with homogeneous consumers. This paper shows that oversupply may also occur if this assumption is relaxed. Whether a monopolist oversupplies or undersupplies frequency...

With the increase in the price of oil, fuel surcharges have become a common and widely used practice in the transportation industry. Firms ask consumers to pay these surcharges in addition to the base price. Assuming that (i) fuel prices randomly fluctuate, (ii) fuel prices affect firms' costs...