Public transport in towns - Inevitably on the decline?

Bus transport in Linköping, a town of 140 000 people, was strongly on the increase up to the beginning of the 1980s, when a negative trend-break occurred. A demand model is developed which explains both the ongoing decline and the preceding increase. Based on this model, it is examined whether a change of the current bus transport policy towards an optimal pricing and investment policy from a social point of view could evoke a new and positive trend-break. Taking current trends in the exogenous factors into account it would. However, this could depend on a possible revival of bicycling in towns.