A theoretical model is adopted in order to discuss optimal fare and optimal quality of supply schemes for a transport operator. The analysis shows how fare and quality of supply are related to travel distance and to the transport operator's emphasis on profit versus consumer surplus. Under...

A two-person game-theoretical model is suggested in order to explain traffic safety behaviour among road users. A road user's outcome is dependent on her and her opponent's attitude towards aggression, her and her opponent's level of attention, as well as on external traffic safety conditions....

This paper focuses on welfare optimal transport policies in a public transport market where positive externalities from the route supplier to the travellers as well as negative externalities within group of consumers exist. Additionally, there might be capacity constraints of two types. Firstly,...

This paper analyses optimal contracts in a principal-agent model where the agent is intrinsically motivated, and there is an endogenous relationship between the structure of incentive payments and intrinsic motivation (crowding effects). The analysis shows that crowding effects have implications...