Private toll roads: Competition under various ownership regimes
AbstractInterest is growing in private toll roads as an alternative to public free-access road infrastructure. Private toll roads have gained favour for various reasons, including a dearth of public funds for road construction and maintenance, increasing traffic congestion, and growing acceptance of the user-pay principle in general, and road pricing in particular. This paper focuses on allocative efficiency of private toll roads. The model features one origin and one destination linked by two parallel routes that can differ in capacity and free-flow travel time. Congestion takes the form of queueing. Prospective travellers decide whether to drive, and if so on which route and at what time. Three private ownership regimes are considered: (1) a private road on one route and free access on the other, (2) a private roads duopoly, and (3) a mixed duopoly with a private road competing with a public toll road. Private toll roads are generally found to enhance allocative efficiency (measured by social surplus) relative to free access. The efficiency gain is greater when both routes are tolled, tolls are varied over time to eliminate queueing, and when no private road has a dominant fraction of total capacity. Paradoxically, mixed duopoly can be less efficient than a private duopoly. Price leadership by a public toll road avoids this possibility, although leadership typically yields little additional efficiency gain.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal The Annals of Regional Science.
Volume (Year): 34 (2000)
Issue (Month): 1 ()
Note: Received: June 1998/Accepted: October 1998
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00168/index.htm
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.