IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v50y2019i1p57-69.html
   My bibliography  Save this article

An endogenous equilibrium game on traffic congestion externalities

Author

Listed:
  • Leah H. Palm-Forster
  • Joshua M. Duke

Abstract

Traffic congestion and road tolls are familiar economic concepts for most undergraduates; however, students often have difficulty explaining exactly how theoretical principles like externalities and social welfare are related to their real-world experiences, such as driving. The authors present a classroom exercise to demonstrate how congestion externalities are generated, the effects on private and social welfare, and how appropriately priced tolls can address congestion externalities. Students are asked to evaluate outcomes in five different driving scenarios, with and without congestion or tolls. The authors offer discussion questions to make the activity engaging and informative. They report the results of their efforts to administer the exercise. This 75-minute exercise is appropriate for introductory or intermediate microeconomics, political economy, or environmental economics classes of various sizes.

Suggested Citation

  • Leah H. Palm-Forster & Joshua M. Duke, 2019. "An endogenous equilibrium game on traffic congestion externalities," The Journal of Economic Education, Taylor & Francis Journals, vol. 50(1), pages 57-69, January.
  • Handle: RePEc:taf:jeduce:v:50:y:2019:i:1:p:57-69
    DOI: 10.1080/00220485.2018.1551095
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220485.2018.1551095
    Download Restriction: Access to full text is restricted to subscribers.

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

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:taf:jeduce:v:50:y:2019:i:1:p:57-69. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/VECE20 .

    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.