ABSTRACT
Fares are money exchange between the passenger and the public transport operator. This simple exchange underpins a complex set of decisions in every urban area which have far-reaching impacts beyond the operation and use of the public transport system. It affects the accessibility of citizens and ultimately impacts urban form. A fare to the user may be a simple money sum but it is actually part of a system determined by three components: the fare structure, the fare collection and the fare level. This chapter develops an understanding of the framework underpinning the setting of fares. It discusses the components of a fare system by looking at fare structures, fare collection systems and fare levels before turning to the micro-economic foundations of fare computation. It looks at how this might be put in practice using, as a case study, the bus system in Santiago, Chile. The chapter summarises the issues and highlight some policy implications of common fare structures.
