Teleworking and Congestion: A Dynamic Bottleneck Analysis
AbstractWe analyze the welfare effects of part-day teleworking on road traffic congestion in the context of Vickrey's dynamic bottleneck model. Endogenous decisions to become equipped with a teleworking-enabling technology change the scheduling of arrival times at work for equipped drivers and, due to congestion externalities, affects travel costs of all drivers. We show that even costless teleworking might be marginally welfare reducing, after reaching the optimal penetration level, as an equipped driver imposes a higher travel externality on other equipped drivers than unequipped drivers do. We study various possible market configurations for the supply of the technology, and find that private monopolistic supply of the technology might yield a higher social welfare than perfectly competitive supply.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-096/3.
Date of creation: 18 Jul 2011
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traffic congestion; teleworking; bottleneck model;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
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