Congestion in the bathtub

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

This paper presents a model of urban traffic congestion that allows for hypercongestion. Hypercongestion has fundamental importance for the costs of congestion and the effect of policies such as road pricing, transit provision and traffic management, treated in the paper. In the simplest version of the model, the unregulated Nash equilibrium is also the social optimum among a wide range of potential outcomes and any reasonable road pricing scheme will be welfare decreasing. Large welfare gains can be achieved through road pricing when there is hypercongestion and travelers are heterogeneous.

OriginalsprogEngelsk
TidsskriftEconomics of Transportation
Vol/bind4
Udgave nummer4
Sider (fra-til)241-255
Antal sider15
ISSN2212-0122
DOI
StatusUdgivet - 1 dec. 2015

ID: 181871482