Question

If people attempt to free ride fee-based public transportation, how can one implement the benefit-based principle?

Answer 1

Public transportation uses a fee based system where commuters have to buy tickets per ride or monthly pass for travelling. Both these methods require them to spend money. So those who are likely to take the benefit of a public transport, only they are required to pay for it on the basis of benefits received by them. No one can free ride on others in such a case because the transportation system does not allow nonpayers to use the services. Now the ticket prices vary depending on the distance covered, and this represents the benefits received. For short routes, the benefits are smaller and so the ticket price is low. For a longer journey, the ticket price is higher. Hence, the fee based system is based on benefit-based principle.