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  • Erik T. Verhoef

    (Vrije Universiteit Amsterdam)


This paper develops a continuous-time -continuous-place economic model of road trafficcongestion with a bottleneck, based on car-following theory. The model integrates twoarchetype congestion technologies used in the economics literature: 'static flow congestion',originating in the works of Pigou, and 'dynamic bottleneck congestion', pioneered byVickrey. Because a closed-form analytical solution of the formal model does not exist, itsbehaviour is explored using a simulation model. In a setting with endogenous departure timechoice and with a bottleneck along the route, it is shown that 'hypercongestion' can arise as adynamic -transitional and local- equilibrium phenomenon. Also dynamic toll schedules areexplored. It is found that a toll rule based on an intuitive dynamic and space-varyinggeneralization of the standard Pigouvian tax rule can hardly be improved upon. A naiveapplication of a toll schedule based on Vickrey 's bottleneck model, in contrast, appears toperform much worse and actually even reduces welfare in the numerical model.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-062/3.

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Date of creation: 28 Jun 2002
Date of revision: 27 May 2003
Handle: RePEc:dgr:uvatin:20020062

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Keywords: congestion; road pricing; networks;

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Cited by:
  1. Matteo Richiardi, 2003. "The New Italian Road Code and the Virtues of the ‘Shame Lane’," LABORatorio R. Revelli Working Papers Series 31, LABORatorio R. Revelli, Centre for Employment Studies.
  2. Arnott, Richard & Inci, Eren, 2008. "The Stability of Downtown Parking and Traffic Congestion," MPRA Paper 11786, University Library of Munich, Germany.
  3. Verhoef, Erik T., 2005. "Speed-flow relations and cost functions for congested traffic: Theory and empirical analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 792-812.


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