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(London, UK) Massive Tube Fare Changes Considered


This is an interesting concept because:

1) It imposes a peak/off peak fare in London for the first time, raising fares at more than twice the rate of inflation during peak periods, but actually lowering it during off peak periods. This is good because elasticity is much lower during peak periods (when people have to go to work) than off peak periods.
2) It makes pricing people off the ovecroweded Tube (and onto buses) public policy
3) It helps to close a big shortfall in the budget for the Tube. Without additional revenues service will continue to detiorate.

All in all, it's good public policy but terible politically.

(London, UK) Massive Tube Fare Shake Up Proposed