Welfare analysis in transport networks

Quite often, the second approach is deemed wrong, as consumers are supposed to demand journeys, not parts of journeys. However, we show that for a quite general economic model and under fairly general assumptions regarding the network, both approaches are equivalent. The cost-benefit analysis practitioner can exploit this result. The links approach reveals on what part of the networks user benefits and/or losses are generated. This additional piece of information might help to optimize the project design.