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Information and Usage of Congestible Facilities Under Different Pricing Regimes

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  • Robin Lindsey
  • Andre de Palma

Abstract

Uncertainty about usage conditions is common in many congestible facilities. In this paper, the authors consider the effects of providing information to prospective users under three regimes: free access, nonresponsive congestion tolling, and responsive tolling based on current information. With either free access or nonresponsive tolling better information can induce changes in usage that reduce expected social surplus. But responsive tolling assures that better information is welfare improving. The joint welfare gains from providing information and tolling can be larger or smaller than the sum of the gains from implementing each independently. Superadditivity is likely to obtain when demand is price elastic.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 31 (1998)
Issue (Month): 3 (August)
Pages: 666-692

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Handle: RePEc:cje:issued:v:31:y:1998:i:3:p:666-692

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Citations

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Cited by:
  1. André De Palma & Robin Lindsey & Nathalie Picard, 2008. "Risk aversion, the value of information and traffic equilibrium," Working Papers hal-00349492, HAL.
  2. Muhammad Sabir & Jos van Ommeren & Mark Koetse & Piet Rietveld, 2008. "Welfare Effects of Adverse Weather through Speed Changes in Car Commuting Trips," Tinbergen Institute Discussion Papers 08-087/3, Tinbergen Institute.
  3. Enrique Fernández L., J. & de Cea Ch, Joaquín & Germán Valverde, G., 2009. "Effect of advanced traveler information systems and road pricing in a network with non-recurrent congestion," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 43(5), pages 481-499, June.
  4. Muhammad Sabir & Jos Ommeren & Mark Koetse & Piet Rietveld, 2011. "Adverse Weather and Commuting Speed," Networks and Spatial Economics, Springer, Springer, vol. 11(4), pages 701-712, December.
  5. Gubins, Sergejs & Verhoef, Erik T. & de Graaff, Thomas, 2012. "Welfare effects of road pricing and traffic information under alternative ownership regimes," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 46(8), pages 1304-1317.
  6. Muhammad Sabir & Jos van Ommeren & Mark Koetse & Piet Rietveld, 2008. "Welfare Effects of Adverse Weather through Speed Changes in Car Commuting Trips," Tinbergen Institute Discussion Papers 08-087/3, Tinbergen Institute.
  7. C. Robin Lindsey & Erik T. Verhoef, 2000. "Traffic Congestion and Congestion Pricing," Tinbergen Institute Discussion Papers 00-101/3, Tinbergen Institute.
  8. Sergejs Gubins & Erik T. Verhoef & Thomas de Graaff, 2010. "Welfare Effects of Road Pricing and Traffic Information under Alternative Ownership Regimes," Tinbergen Institute Discussion Papers 10-091/3, Tinbergen Institute.
  9. Gardner, Lauren M. & Boyles, Stephen D. & Waller, S. Travis, 2011. "Quantifying the benefit of responsive pricing and travel information in the stochastic congestion pricing problem," Transportation Research Part A: Policy and Practice, Elsevier, Elsevier, vol. 45(3), pages 204-218, March.
  10. C. Robin Lindsey & Erik T. Verhoef, 2000. "Traffic Congestion and Congestion Pricing," Tinbergen Institute Discussion Papers 00-101/3, Tinbergen Institute.
  11. Sergejs Gubins & Erik T. Verhoef, 2011. "Teleworking and Congestion: A Dynamic Bottleneck Analysis," Tinbergen Institute Discussion Papers 11-096/3, Tinbergen Institute.

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