Abstract
In this paper, the planning models to design the optimal means to maintain the bus services in sparsely populated areas are formulated. The optimal combinations of user- and firm-subsidies, which maximize the consumers' surplus or the aggregated expected utility, are investigated. The methodology is also presented to evaluate the economic manageability of bus services in sparsely populate communities. The case study in Tottori prefecture is described to illustrate the applicability of the proposed methodology.
