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Sharing profit in parallel and serial transport networks

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    Abstract

    This paper studies the incentives for different countries to cooperate concerning pricing in transport systems, and how to handle the profit from such cooperation. Two types of simple networks with congestion are considered; one with parallel links, and one serial network with a number of consecutive links. The owner of each link tolls the traffic using the link. First the incentives for cooperative behavior among the countries are studied, and shown to be considerable. This is done by using non-cooperative game theory. Second, cooperative game theory is used to analyse solution concepts for allocating the resources raised from cooperation.

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    File URL: http://www.transportportal.se/SWoPEc/CTS2011-7.pdf
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    Bibliographic Info

    Paper provided by CTS - Centre for Transport Studies Stockholm (KTH and VTI) in its series Working papers in Transport Economics with number 2011:7.

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    Length: 45 pages
    Date of creation: 02 Nov 2011
    Date of revision:
    Handle: RePEc:hhs:ctswps:2011_007

    Contact details of provider:
    Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
    Web page: http://www.kth.se/abe/om_skolan/organisation/centra/cts

    Related research

    Keywords: Transport networks; game theory; cooperative game theory;

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    1. De Borger, B. & Proost, S. & Van Dender, K., 2005. "Congestion and tax competition in a parallel network," European Economic Review, Elsevier, vol. 49(8), pages 2013-2040, November.
    2. David Levinson, 2001. "Why States Toll: An Empirical Model of Finance Choice," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(2), pages 223-237, May.
    3. Kurt Van Dender, 2005. "Duopoly prices under congested access," Journal of Regional Science, Wiley Blackwell, vol. 45(2), pages 343-362.
    4. De Borger Bruno & Dunkerley Fay & Proost Stef, 2006. "The interaction between tolls and capacity investment in serial and parallel transport networks," Energy, Transport and Environment Working Papers Series ete0607, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
    5. Agrell Per J. & Pouyet Jerome, 2008. "Regulatory Competition in Network Interconnection Pricing," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-25, March.
    6. Anna Bassanini & Jérôme Pouyet, 2004. "Strategic Choice of Financing Systems in Regulated and Interconnected Industries," Working Papers 2004-08, Centre de Recherche en Economie et Statistique.
    7. repec:rne:rneart:v:7:y:2008:i:1:p:111-135 is not listed on IDEAS
    8. Van Dender, Kurt, 2005. "Duopoly Prices Under Congested Access," University of California Transportation Center, Working Papers qt7xw8c3fn, University of California Transportation Center.
    9. Robin Lindsey & André de Palma, 1997. "Private Toll Roads: A Dynamic Equilibrium Analysis," Tinbergen Institute Discussion Papers 97-057/3, Tinbergen Institute.
    10. Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
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