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Cost functions for multiple transportation modes in the presence of congestion

Listed author(s):
  • Dong-Joo Moon


    (Seoul National University, School of Civil, Urban, & Geosystem Engineering, San 56-1 Sillim-dong, Kwanak-gu, Seoul, Korea 151-742)

  • Chang-Ho Park


    (Seoul National University, School of Civil, Urban, & Geosystem Engineering, San 56-1 Sillim-dong, Kwanak-gu, Seoul, Korea 151-742)

Registered author(s):

    This paper introduces an alternative way of specifying the social cost function for transportation services. This paper formulates the transportation cost function as a social cost minimization problem in the presence of congestion phenomena. This social cost function has an advantage in terms of assessing the cost structure of various transportation modes in a unified manner. In addition, the social cost function has a structure that can yield precise information about the structures of other cost functions such as a marginal social cost function and a marginal supplier cost function. This paper illustrates those advantages with the analysis to derive the specific expressions of the various cost functions for highway uses, and for public transit services. Especially, this analysis pinpoints on identifying the difference in the structures of cost functions for the two modes.

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    Article provided by Springer & Western Regional Science Association in its journal The Annals of Regional Science.

    Volume (Year): 36 (2002)
    Issue (Month): 2 ()
    Pages: 315-346

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    Handle: RePEc:spr:anresc:v:36:y:2002:i:2:p:315-346
    Note: Received: February 2001/Accepted: December 2001
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