Assessing the Impact of Monopoly Toll Road Service Areas
The higher prices on the Garden State Parkway, the Atlantic City Expressway, and the New Jersey Turnpike found in this study demonstrate that consumers face increased prices when there is a government-created monopoly for service providers at rest areas instead of vigorous competition. Prices for gasoline are higher at service areas along the Garden State Parkway and the Atlantic City Expressway. Food prices are dramatically higher at service areas along the Garden State Parkway, the Atlantic City Expressway, and the New Jersey Turnpike. Consumers are clearly worse off when they are paying these marked-up food and gasoline prices on New Jersey's toll roads. As this research has demonstrated, consumer welfare along the GSP and NJT is annually reduced by $5,475,027 because of higher gasoline prices and $26,227,925 because of higher food prices. While these findings focus on the price and quantities of goods sold at monopoly service areas, economic theory also suggests that the quality of customer service may be reduced when competition is absent.
Volume (Year): 30 (2004)
Issue (Month): 3 (Summer)
|Contact details of provider:|| Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA|
Phone: (201) 684-7346
Web page: https://www.quinnipiac.edu/eea/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:30:y:2004:i:3:p:393-409. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.