Abstract
Over a period of 3 years starting in 1994, Metropolitan Transportation Authority (MTA) New York City Transit (NYCT) installed automated fare-collection technology systemwide and introduced MetroCard, an electronic fare card capable of storing value and time. Over a single year starting in July 1997, NYCT introduced the following fare incentives: (a) free intermodal transfers, (b) a discount on bulk purchase of value on MetroCard, (c) a reduction in the express bus fare, and (d) 7- and 30-day unlimited-ride MetroCards. (A 1-day unlimited-ride MetroCard was added in January 1999.) The effect of these fare incentives on subway and bus ridership is examined, and the changes due to the fare incentives are presented in the context of historical trends.
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