Wednesday, April 12, 2006

Price Inelasticity #2 - thanks Ben

I stand corrected to my earlier post. Buying a ten-trip off peak at a discount and using it during peak invokes a Metro North policy of step up fares that is greater than the one-way difference. Net-net. Unless your conductor knows you and cuts some slack or is really bad at basic math, the ten-trip off peak will not likely save you over the ten-trip peak ticket.

What does this mean for the commuter? There's no effective discount on a ten-trip ticket. Only a paper and time saving over buying them one off. Since Metro North is effectively saving by having to only process one ticket instead of 10, shouldn't they be passing on some of those savings?

Today's pic is the email answer from Metro North.


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