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Private Operators and Time-of-Day Tolling on a Congested Road Network

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  • André de Palma
  • Robin Lindsey
  • Fang Wu

Abstract

Congestion pricing by public and private toll road operators is compared using METROPOLIS: the first fully dynamic traffic simulator that treats transport mode, departure time and route choices endogenously. Toll scenarios are defined by what is tolled (traffic lanes, roads or areas) and whether tolls vary over time. The distortion caused by exercise of market power by a private operator is not systematically related to the amount of road capacity that is tolled. A third-best tolling scheme in which tolls are varied in steps to eliminate queuing performs favourably compared to public step tolling and better than private tolling. © 2008 LSE and the University of Bath

Suggested Citation

  • André de Palma & Robin Lindsey & Fang Wu, 2008. "Private Operators and Time-of-Day Tolling on a Congested Road Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(3), pages 397-433, September.
  • Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:3:p:397-433
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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