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Road Pricing in a Serial Network

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  • Se-il Mun
  • Ki-jung Ahn

Abstract

This paper presents a model of a transport system with two road links in a series that describes traffic patterns under various pricing regimes. We consider various mixes of road operation including private-public toll roads, free-private toll roads, and free- public toll roads. We derive the pricing rules and evaluate the economic welfare under alternative regimes. Inter-regional distribution of welfare is also discussed. It is shown that pricing rules applied by a public operator differ from those in a parallel network, and the relative efficiency of alternative regimes depends on the presence of road congestion. A mix of private and public toll roads attains higher economic welfare and lower disparity, especially in the presence of heavy congestion. © 2008 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

Volume (Year): 42 (2008)
Issue (Month): 3 (September)
Pages: 367-395

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Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:3:p:367-395

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. DE BORGER, Bruno & PROOST, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Working Papers 2012014, University of Antwerp, Faculty of Applied Economics.

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