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Congestion in a city with a central bottleneck

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  • Fosgerau, Mogens
  • de Palma, André

Abstract

We consider dynamic congestion in an urban setting where trip origins are spatially distributed. All travelers must pass through a downtown bottleneck in order to reach their destination in the CBD. Each traveler chooses departure time to maximize general concave scheduling utility. We find that, at equilibrium, travelers sort according to their distance to the destination; the queue is always unimodal regardless of the spatial distribution of trip origins. We construct a welfare maximizing tolling regime, which eliminates congestion. All travelers located beyond a critical distance from the CBD gain from tolling, even when toll revenues are not redistributed, while nearby travelers lose. We discuss our results in the context of acceptability of tolling policies.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 71 (2012)
Issue (Month): 3 ()
Pages: 269-277

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Handle: RePEc:eee:juecon:v:71:y:2012:i:3:p:269-277

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Web page: http://www.elsevier.com/locate/inca/622905

Related research

Keywords: D1; R1; R4; Dynamic model; Toll policy; Spatial differentiation; Acceptability;

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References

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  1. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1999. "Information and time-of-usage decisions in the bottleneck model with stochastic capacity and demand," European Economic Review, Elsevier, Elsevier, vol. 43(3), pages 525-548, March.
  2. Mogens Fosgerau & Kenneth Small, 2013. "Endogenous Scheduling Preferences and Congestion," Working Papers, University of California-Irvine, Department of Economics 131403, University of California-Irvine, Department of Economics, revised May 2014.
  3. Yin-yen Tseng & Erik Verhoef, 2007. "Value of Time by Time of Day: A Stated-Preference Study," Tinbergen Institute Discussion Papers, Tinbergen Institute 07-061/3, Tinbergen Institute, revised 08 Nov 2007.
  4. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, American Economic Association, vol. 59(2), pages 251-60, May.
  5. Richard Arnott & Elijah DePalma, 2010. "The Corridor Problem: Preliminary Results on the No-toll Equilibrium," Working Papers, University of California at Riverside, Department of Economics 201003, University of California at Riverside, Department of Economics, revised Jan 2010.
  6. de Palma, André & Fosgerau, Mogens, 2013. "Random queues and risk averse users," European Journal of Operational Research, Elsevier, Elsevier, vol. 230(2), pages 313-320.
  7. Daganzo, Carlos F., 2007. "Urban gridlock: Macroscopic modeling and mitigation approaches," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 41(1), pages 49-62, January.
  8. Geroliminis, Nikolas & Daganzo, Carlos F., 2008. "Existence of urban-scale macroscopic fundamental diagrams: Some experimental findings," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 42(9), pages 759-770, November.
  9. Fosgerau, Mogens & Engelson, Leonid, 2010. "The value of travel time variance," MPRA Paper 42272, University Library of Munich, Germany.
  10. van den Berg, Vincent & Verhoef, Erik T., 2011. "Winning or losing from dynamic bottleneck congestion pricing?: The distributional effects of road pricing with heterogeneity in values of time and schedule delay," Journal of Public Economics, Elsevier, Elsevier, vol. 95(7-8), pages 983-992, August.
  11. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, American Economic Association, vol. 83(1), pages 161-79, March.
  12. Richard Arnott & Andre de Palma & Robin Lindsey, 1993. "The Welfare Effects Of Congestion Tolls With Heterogeneous Commuters," Boston College Working Papers in Economics, Boston College Department of Economics 231, Boston College Department of Economics.
  13. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1991. "A temporal and spatial equilibrium analysis of commuter parking," Journal of Public Economics, Elsevier, Elsevier, vol. 45(3), pages 301-335, August.
  14. Nikolas Geroliminis & David Levinson, 2008. "Cordon pricing consistent with the physics of overcrowding," Working Papers, University of Minnesota: Nexus Research Group 000038, University of Minnesota: Nexus Research Group.
  15. Mun, Se-il, 1999. "Peak-Load Pricing of a Bottleneck with Traffic Jam," Journal of Urban Economics, Elsevier, Elsevier, vol. 46(3), pages 323-349, November.
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Citations

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Cited by:
  1. Mogens Fosgerau & André De Palma & Anders Karlstrom & Kenneth A. Small, 2012. "Trip timing and scheduling preferences," Working Papers, HAL hal-00742267, HAL.
  2. Gubins, Sergejs & Verhoef, Erik T., 2014. "Dynamic bottleneck congestion and residential land use in the monocentric city," Journal of Urban Economics, Elsevier, Elsevier, vol. 80(C), pages 51-61.
  3. Fosgerau, Mogens & Lindsey, Robin, 2013. "Trip-timing decisions with traffic incidents," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(5), pages 764-782.
  4. Börjesson, Maria & Kristoffersson, Ida, 2012. "Estimating welfare effects of congestion charges in real world settings," Working papers in Transport Economics, CTS - Centre for Transport Studies Stockholm (KTH and VTI) 2012:13, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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