IDEAS home Printed from
   My bibliography  Save this article

Optimal facility placement and discriminatory congestion pricing in neighborhoods with different time costs


  • H. Shelton Brown

    () (Management and Policy Studies, University of Texas, Houston School of Public Health, Brownsville RAHC, 80 Fort Brown, 78520 Brownsville, TX, USA)


In many urban areas, time costs or wages vary between neighborhoods, but there is little wage variation within a given neighborhood. Neighborhoods are often labelled "working class," "middle class," or even "wealthy." For this reason, there are many efficiency and distributional issues related to location because location largely determines access costs. Congestion also affects time costs and access. Many public policies are geared towards improving access for households in low-wage neighborhoods. Public facilities are built; some firms receive nonprofit status. In order to evaluate these policies, normative theory is needed. This paper develops theory on the optimal placement of facilities and their congestion prices in urban areas with wage variation between neighborhoods. The results show that optimal locations and prices depend on the extent of wage inequality.

Suggested Citation

  • H. Shelton Brown, 2002. "Optimal facility placement and discriminatory congestion pricing in neighborhoods with different time costs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(2), pages 181-196.
  • Handle: RePEc:spr:anresc:v:36:y:2002:i:2:p:181-196
    Note: Received: February 2001/Accepted: September 2001

    Download full text from publisher

    File URL:
    Download Restriction: Access to the full text of the articles in this series is restricted

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:eee:ijrema:v:25:y:2008:i:4:p:294-300 is not listed on IDEAS

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:anresc:v:36:y:2002:i:2:p:181-196. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.