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Road Pricing in a Serial Network


  • Se-il Mun
  • Ki-jung Ahn


This paper presents a model of a transport system with two road links in a series that describes traffic patterns under various pricing regimes. We consider various mixes of road operation including private-public toll roads, free-private toll roads, and free- public toll roads. We derive the pricing rules and evaluate the economic welfare under alternative regimes. Inter-regional distribution of welfare is also discussed. It is shown that pricing rules applied by a public operator differ from those in a parallel network, and the relative efficiency of alternative regimes depends on the presence of road congestion. A mix of private and public toll roads attains higher economic welfare and lower disparity, especially in the presence of heavy congestion. © 2008 LSE and the University of Bath

Suggested Citation

  • Se-il Mun & Ki-jung Ahn, 2008. "Road Pricing in a Serial Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 367-395, September.
  • Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:3:p:367-395

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    Cited by:

    1. Mandell, Svante & Proost, Stef, 2016. "Why truck distance taxes are contagious and drive fuel taxes to the bottom," Journal of Urban Economics, Elsevier, vol. 93(C), pages 1-17.
    2. Watling, D.P. & Shepherd, S.P. & Koh, A., 2015. "Cordon toll competition in a network of two cities: Formulation and sensitivity to traveller route and demand responses," Transportation Research Part B: Methodological, Elsevier, vol. 76(C), pages 93-116.
    3. Achim I. Czerny & Kay Mitusch & Andreas Tanner, 2010. "Priority Rules Versus Scarcity Premiums in Rail Markets," WHU Working Paper Series - Economics Group 10-03, WHU - Otto Beisheim School of Management.
    4. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    5. Maria Angeles Santos & José Miguel Villalón & Luis Orozco-Barbosa, 2016. "Dyn-ARF: a rate adaptation mechanism sensitive to the network load over 802.11 WLANs," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 61(1), pages 5-19, January.

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