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Coaches versus planes: determinants of choice between transportation modes

In this paper it was elaborated a set of models to explain the rational choice between traveling by bus or airplane. It was used a basic model of microeconomics so the economic agent will choose the mode of transport that maximize his utility function. Moreover, it was estimated the relation between minimum income earned by the agent to travel by airplane and the distance to be traveled. It was found that there is an inverse relationship, as the distance to be traveled is increased the value of the minimum income is decreased. This phenomenon arises from the inverse relationship between relative prices and distance to be covered. Assuming the minimum income to travel by plane as a restriction on individuals, it was deduced that a greater distance increases the potential number of people using airplane, as well the minimum income to use this mode of transport decreases with greater distance.

representative agent; travel time; standard basket of goods; rational choice; intermodal competition


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