The Welfare Analysis Of Free Seat Passenger Based On The Same Ticket Fare

When traveling by train, the non-seat passengers cannot enjoy the same service as seat passengers although the price of both non-seat tickets and seat tickets is the same. Based on this phenomenon and the experience of author, this paper discusses the welfare of non-seat passengers. It aims to talk about whether the passengers without seat tickets are subject to a loss of welfare or not.First, the paper analyzes the reasons of non-seat tickets from the aspects of economics and society. Now that the non-seat tickets are generated by the passengers' rigid demands, what are the effect factors of choosing non-seat tickets? And which crowd mainly purchases the non-seat tickets? From the analysis of this paper, the low-income crowd (including students and migrant workers) accepts the non-seat tickets under the constraints of revenue budget. Compared with pricing by the market (such as U.S.), the fare of train tickets is priced by the government in China. On the background of this rule, the welfare of all the passengers has been improved and the railway department has also received a corresponding subsidy. But in the present situation, based on the same tickets fare and compared with the seat passengers, we have to think about how the actual welfare of non-seat passengers is. The author mainly uses the consumer surplus to discuss the welfare of passengers who face different demand curves.This paper attempts to achieve the following innovations:first, break the domestic analysis blankness of passengers'welfare. Secondly, consider the actual payment that is different from the price by introducing time cost. Thirdly, according to the analysis, the author draws a conclusion that to ensure fairness, different types of fare tickets should be set different prices.