How a fast lane may replace a congestion toll
AbstractThis paper considers a congested bottleneck. A fast lane reserves a more than proportional share of capacity to a designated group of travelers. Travelers are otherwise identical and other travelers can use the reserved capacity when it would otherwise be idle. The paper shows that such a fast lane is always Pareto improving under Nash equilibrium in arrival times at the bottleneck and inelastic demand. It can replicate the arrival schedule and queueing outcomes of a toll that optimally charges a constant toll during part of the demand peak. Within some bounds, the fast lane scheme is still welfare improving when demand is elastic.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42271.
Date of creation: 2011
Date of revision:
Congestion; Tolling; Bottleneck; Scheduling; Fast lane;
Other versions of this item:
- 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-2012-11-11 (All new papers)
- NEP-REG-2012-11-11 (Regulation)
- NEP-TRE-2012-11-11 (Transport Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Shen, Wei & Zhang, H.M., 2010. "Pareto-improving ramp metering strategies for reducing congestion in the morning commute," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(9), pages 676-696, November.
- De Palma, André & Fosgerau, Mogens, 2010.
"Random queues and risk averse users,"
24215, University Library of Munich, Germany.
- Richard Arnott & Andre de Palma & Robin Lindsey, 1985.
"Economics of a Bottleneck,"
636, Queen's University, Department of Economics.
- Laih, Chen-Hsiu, 1994. "Queueing at a bottleneck with single- and multi-step tolls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(3), pages 197-208, May.
- 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, vol. 83(1), pages 161-79, March.
- Chen-Hsiu Laih, 2004. "Effects of the optimal step toll scheme on equilibrium commuter behaviour," Applied Economics, Taylor and Francis Journals, vol. 36(1), pages 59-81.
- Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Dealing with congestion: fast lane or toll booth?
by Economic Logician in Economic Logic on 2012-12-03 15:11:00
- Berg, V.A.C. van den, 2012. "Step tolling with price sensitive demand: Why more steps in the toll makes the consumer better off," Serie Research Memoranda 0003, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Robin Lindsey, C. & van den Berg, Vincent A.C. & Verhoef, Erik T., 2012. "Step tolling with bottleneck queuing congestion," Journal of Urban Economics, Elsevier, vol. 72(1), pages 46-59.
- van den Berg, Vincent A.C., 2012. "Step-tolling with price-sensitive demand: Why more steps in the toll make the consumer better off," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(10), pages 1608-1622.
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