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Endogenous Scheduling Preferences and Congestion

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  • Mogens Fosgerau

    ()
    (Technical University of Denmark and Centre for Transport Studies, Sweden)

  • Kenneth Small

    ()
    (Department of Economics, University of California-Irvine)

Abstract

We seek to better understand the scheduling of activities in time through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to concave preferences and temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences; but optimal policies differ: the Vickrey model will under-predict the benefits of congestion pricing, and such pricing may make people better off even without considering the use of revenues.

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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 131403.

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Length: 42 pages
Date of creation: Jan 2013
Date of revision: May 2014
Handle: RePEc:irv:wpaper:131403

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Keywords: Urban congestion; Agglomeration; Endogenous preferences; scheduling preferences; Bottleneck;

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References

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  1. Richard Arnott, 2007. "Congestion Tolling with Agglomeration Externalities," Boston College Working Papers in Economics, Boston College Department of Economics 660, Boston College Department of Economics.
  2. Helsley, Robert W. & Sullivan, Arthur M., 1991. "Urban subcenter formation," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 21(2), pages 255-275, July.
  3. Richard Arnott & Andre de Palma & Robin Lindsey, 1985. "Economics of a Bottleneck," Working Papers, Queen's University, Department of Economics 636, Queen's University, Department of Economics.
  4. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, Elsevier, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
  5. Eva Gutiérrez-i-Puigarnau & Jos N. Van Ommeren, 2012. "Start Time and Worker Compensation Implications for Staggered-Hours Programmes," Journal of Transport Economics and Policy, London School of Economics and University of Bath, London School of Economics and University of Bath, vol. 46(2), pages 205-220, May.
  6. Fosgerau, Mogens & Engelson, Leonid, 2011. "The value of travel time variance," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 45(1), pages 1-8, January.
  7. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 47(4), pages 983-1028, December.
  8. Henderson, J. Vernon, 1981. "The economics of staggered work hours," Journal of Urban Economics, Elsevier, vol. 9(3), pages 349-364, May.
  9. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, American Economic Association, vol. 59(2), pages 251-60, May.
  10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
  11. 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, American Economic Association, vol. 83(1), pages 161-79, March.
  12. Anas, Alex & Kim, Ikki, 1996. "General Equilibrium Models of Polycentric Urban Land Use with Endogenous Congestion and Job Agglomeration," Journal of Urban Economics, Elsevier, vol. 40(2), pages 232-256, September.
  13. Eva Gutierrez-i-Puigarnau & Jos N. van Ommeren, 2010. "Start Time and Worker Compensation: Implications for Staggered-Hours Programs," Tinbergen Institute Discussion Papers, Tinbergen Institute 10-073/3, Tinbergen Institute.
  14. André De Palma & Mogens Fosgerau, 2010. "Dynamic and Static congestion models: A review," Working Papers, HAL hal-00539166, HAL.
  15. Starrett, David A., 1974. "Principles of optimal location in a large homogeneous area," Journal of Economic Theory, Elsevier, Elsevier, vol. 9(4), pages 418-448, December.
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Cited by:
  1. Fosgerau, Mogens & de Palma, André, 2012. "Congestion in a city with a central bottleneck," MPRA Paper 42270, University Library of Munich, Germany.

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