At first glance, the low estimated elasticity for the service frequency variable (each
1% increase in service frequency within an area unit causes only a 0.045% increase
in patronage) might lead one to believe that increasing service frequency during
rush hour, beyond its current level in Auckland, would not be cost effective. However, one should bear in mind that the unit of analysis is one area unit, and that an
additional service run during rush hour would certainly increase frequency in more
than one area unit and probably in several. Therefore, even with a low estimated
elasticity for the service frequency variable, the increase in number of patrons
brought about through the addition of one more service run during rush hour may
be quite substantial, depending on route, and more than enough to justify the cost
of an additional run