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So reducing the cost will reduce demand? I appreciate this is sometimes the case with luxury goods, but it is hard believe that it would apply to public transport.

Do you have any evidence of a reduction in price leading to a reduction in demand for public transport anywhere in the world?




> So reducing the cost will reduce demand?

My fear is that in case of public transportation, reducing the cost will change the product, and the changed product will be in less demand in the long run.

> Do you have any evidence of a reduction in price leading to a reduction in demand for public transport anywhere in the world?

No, I haven't, and the well-known example of Hasselt in Belgium seems to suggest otherwise [0]. But I am not convinced that what works in a small town in Belgium, or a medium-sized city in Estonia, will work in larger cities.

[0] https://en.wikipedia.org/wiki/Hasselt




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