A Stochastic Model of Congestion caused by Speed Differences
AbstractWe study interaction between the trips of two types of drivers on a two-lane road who differ by their desired speeds. The difference in desired speeds causes congestion, because slow drivers force fast drivers to reduce their speed. An interesting aspect of this type of congestion is that results with respect to tolling are very different from those of the classical Pigou-Knight model where the marginal external costs are an increasing function of the number of road users. In our model we find the opposite result: the marginal external costs of slow drivers are a decreasing function of the number of slow drivers. This leads to rather different policy recommendations. In many situations either laissez faire (no tolling or traffic restrictions) or prohibition of slow drivers to enter the road is in practice (i.e. taking into account costs associated with tolling) the optimal policy. This conclusion hardly changes if the possibility of overtaking is introduced into the model.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 00-091/3.
Date of creation: 10 Nov 2000
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Congestion; Road Pricing;
Other versions of this item:
- Jan Rouwendal & Erik Verhoef & Piet Rietveld & Bert Zwart, 2002. "A Stochastic Model of Congestion Caused by Speed Differences," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(3), pages 407-445, September.
- NEP-ALL-2000-12-15 (All new papers)
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- Verhoef, Erik T. & Rouwendal, Jan & Rietveld, Piet, 1999.
"Congestion Caused by Speed Differences,"
Journal of Urban Economics,
Elsevier, vol. 45(3), pages 533-556, May.
- 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, vol. 83(1), pages 161-79, March.
- Cameron Hepburn, 2006. "Regulation by Prices, Quantities, or Both: A Review of Instrument Choice," Oxford Review of Economic Policy, Oxford University Press, vol. 22(2), pages 226-247, Summer.
- André de Palma & Moez Kilani & Robin Lindsey, 2007.
"The economics of truck toll lanes,"
THEMA Working Papers
2007-13, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- de Palma, André & Kilani, Moez & Lindsey, Robin, 2008. "The merits of separating cars and trucks," Journal of Urban Economics, Elsevier, vol. 64(2), pages 340-361, September.
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