The economics of free buses

By Felix Salmon
August 11, 2009
Dan Ariely wonders how the New York bus system could cope with the extra demand created by making crosstown buses free. (Actually, he does more than wonder: he simply asserts that it couldn't.) But Charles Komanoff has already run the numbers, and as far as anybody knows, they do work.

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Dan Ariely wonders how the New York bus system could cope with the extra demand created by making crosstown buses free. (Actually, he does more than wonder: he simply asserts that it couldn’t.) But Charles Komanoff has already run the numbers, and as far as anybody knows, they do add up.

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