Endogenous Scheduling Preferences and Congestion
AbstractWe 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 InfoPaper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 131403.
Length: 42 pages
Date of creation: Jan 2013
Date of revision:
Urban congestion; Agglomeration; Endogenous preferences; scheduling preferences; Bottleneck;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-TRE-2013-09-26 (Transport Economics)
- NEP-URE-2013-09-26 (Urban & Real Estate Economics)
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