A comparison of subsidized fixed-route and flexible-route feeder bus systems is presented. Mathematical models are formulated to maximize welfare for the two feeder bus systems, subject to a subsidy constraint. Service-zone size, headway, and fare are the decision variables in the analyses. For subsidy operation it is demonstrated that the equilibrium demands for the two systems are different because of their specific service attributes, and that the optimal fare for a flexible-route system is generally higher than for a fixed-route system. The differences in welfare and fares between the two systems under different levels of subsidy for and different route length, service area, and travel speed are identified. Additional studies on integration or permitted competition for the two bus systems are also suggested.
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