Generalised Cost
In transport economics, the generalized cost is the sum of the monetary and non-monetary costs of a journey.
Monetary (or "out-of-pocket") costs might include a fare on a public transport journey, or the costs of fuel, wear and tear and any parking charge, toll or congestion charge on a car journey.
Non-monetary costs refer to the time spent undertaking the journey. Time is converted to a money value using a value of time figure, which usually varies according to the traveller's income and the purpose of the trip.
The generalised cost is equivalent to the price of the good in supply and demand theory, and so demand for journeys can be related to the generalised cost of those journeys using the price elasticity of demand. Supply is equivalent to capacity (and, for roads, road quality) on the network
Read more about Generalised Cost: Basic Form, Congestible Networks, Weighting Different Types of Time, Generalised Time
Famous quotes containing the word cost:
“The cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.”
—Henry David Thoreau (1817–1862)