How a fast lane may replace a congestion toll
AbstractThis paper considers a congested bottleneck. A fast lane reserves a more than proportional share of capacity to a designated group of travelers. Travelers are otherwise identical and other travelers can use the reserved capacity when it would otherwise be idle. The paper shows that such a fast lane is always Pareto improving under Nash equilibrium in arrival times at the bottleneck and inelastic demand. It can replicate the arrival schedule and queueing outcomes of a toll that optimally charges a constant toll during part of the demand peak. Within some bounds, the fast lane scheme is still welfare improving when demand is elastic.
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Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part B: Methodological.
Volume (Year): 45 (2011)
Issue (Month): 6 (July)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/548/description#description
Other versions of this item:
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Dealing with congestion: fast lane or toll booth?
by Economic Logician in Economic Logic on 2012-12-03 15:11:00
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