This paper proposes a multimodal transit supply design model with elastic demand, which takes external costs into account. The proposed model is applied in the case of transit fare optimisation in the region of Campania (southern Italy). Initial results show that internalisation of external costs yields a decrease in system costs and an increase in transit system use. Finally, the proposed models are also applied in the case of reciprocal influence between road and transit systems, yielding rather similar solutions.
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