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Economics of a Bottleneck

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  • Richard Arnott
  • Andre de Palma
  • Robin Lindsey

Abstract

This paper is the first in a series of papers which examine the economics of congestable facilities with peak-load demand, provides a thorough analysis of the simplest bottleneck model: A fixed number of individuals, one per car, must travel from home to work. Between home and work is a bottleneck of given capacity. The costs of travel include queuing time and schedule delay. Equilibrium with no toll, a coarse toll, and a fine toll are compared and optimal bottleneck capacity computed for each case.

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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 636.

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Length: 37 pages
Date of creation: 1985
Date of revision:
Handle: RePEc:qed:wpaper:636

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