- Mohring effect
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The Mohring effect is a technical property of transit systems demonstrating increasing returns.
In brief, as transit frequencies increase, wait times decrease, demand increases, and transit frequencies can increase again. This is because transit schedules occur over time. If there is one bus an hour, the average wait from the desired time of departure (or schedule delay) is 30 minutes, if there are two buses an hour, the schedule delay drops to 15 minutes and so on. So the presence of an additional user increases the likelihood of additional service being provided.
The effect was named for University of Minnesota economist Herbert Mohring, who identified this property in a 1972 paper.
See also
- positive externality
- network effect
References
- Mohring, H. (1972), Optimization and Scale Economies in Urban Bus Transportation, American Economic Review, 591-604
- van Reeven, Peran (2008) Subsidisation of Urban Public Transport and the Mohring Effect, Journal of Transport Economics and Policy, Volume 42, Number 2, May 2008, pp. 349-359(11)
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