2 ms·
In Germany, the state rail company (Deutsche Bahn) tries to address this problem by selling rail discount cards. The idea is that people only take into account
by DiogenesKynikos 6y ago
In Germany, the state rail company (Deutsche Bahn) tries to address this problem by selling rail discount cards.
The idea is that people only take into account fuel costs when considering driving. They don't typically take into account capital costs like depreciation. So the DB sells a 250 Euro card that gives you a 50% discount on tickets for a year. The card creates an artificial sunk cost, and lowers the marginal cost of taking the train, making it more comparable with driving.
- NanoCoaster 6y ago> So the DB sells a 250 Euro card that gives you a 50% discount on tickets for a year. A nitpick that's so small as to almost be irrelevant: For people up to (and including) the age of 26, it's actually 60€/year. This makes going by train a financially pretty attractive travel method.
- kuschku 6y agoOr even the 100, which retails at 3878€ (2nd class)/6560€ (1st class) a year and allows pretty much unlimited travel, forever, everywhere.
- vinay427 6y agoThe SBB equivalent is Switzerland is even cheaper! 165-185 CHF/year (a bit lower in EUR) and now it's cheaper for younger passengers, which means many people get it without really thinking about it because it almost inevitably pays back even with many local transport tickets or certainly intercity travel. A few trips from Zurich to Geneva would mostly or completely offset the cost depending on your ticket.