Demand Estimation: Southern Transportation Authority
The following exercise was taken from: McGuigan, J.R., R. Ch. Moyer, and F. H. deB. Harris, Managerial Economics: Applications, Strategy, and Tactics, 9th Edition, South Western.
Early in 2011, the Southern Transportation Authority (STA), a public agency responsible for serving the commuter rail transportation needs of a large US Eastern city, was faced with raising operating deficits on its system. Also, because of a fiscal austerity program