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Equilibrium at a Bottleneck when Long-Run and Short-Run Scheduling Preferences diverge

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  • Stefanie Peer

    (VU University Amsterdam)

  • Erik T. Verhoef

    (VU University Amsterdam)

Abstract

We consider equilibrium and optimum use of a Vickrey road bottleneck, distinguishing between long-run and short-run scheduling preferences in an otherwise stylized scheduling model. The preference structure reflects that there is a distinction between the (exogenous) 'long-run preferred arrival time', which would be relevant if consumers were unconstrained in the scheduling of their activities, versus the 'short-run preferred arrival time', which is the result of an adaptation of travel routines in the face of constraints caused by, in particular, time-varying congestion levels. We characterize the unpriced equilibrium, the social optimum as well as second-best situations where the availability of the pricing instruments is restricted. All of them imply a dispersed distribution of short-run preferred arrival times. The extent of dispersion in the unpriced equilibrium, however, is higher than socially optimal.

Suggested Citation

  • Stefanie Peer & Erik T. Verhoef, 2013. "Equilibrium at a Bottleneck when Long-Run and Short-Run Scheduling Preferences diverge," Tinbergen Institute Discussion Papers 13-028/VIII, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20130028
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Takayama, Yuki, 2015. "Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 830-847.
    2. Takayama, Yuki & Kuwahara, Masao, 2017. "Bottleneck congestion and residential location of heterogeneous commuters," Journal of Urban Economics, Elsevier, vol. 100(C), pages 65-79.
    3. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin‐Yen Tseng, 2015. "Long‐Run Versus Short‐Run Perspectives On Consumer Scheduling: Evidence From A Revealed‐Preference Experiment Among Peak‐Hour Road Commuters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(1), pages 303-323, February.
    4. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin-Yen Tseng, 2011. "Long-Run vs. Short-Run Perspectives on Consumer Scheduling: Evidence from a Revealed-Preference Experiment among Peak-Hour Road Commuters," Tinbergen Institute Discussion Papers 11-181/3, Tinbergen Institute, revised 25 Aug 2014.
    5. Verhoef, Erik T., 2020. "Optimal congestion pricing with diverging long-run and short-run scheduling preferences," Transportation Research Part B: Methodological, Elsevier, vol. 134(C), pages 191-209.
    6. Takayama, Yuki & Kuwahara, Masao, 2016. "Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters," MPRA Paper 68938, University Library of Munich, Germany.
    7. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.

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    More about this item

    Keywords

    bottleneck model; scheduling decisions; travel routines; long-run vs. short-run;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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