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How To Franchise Highways

Listed author(s):
  • Fielding, Gordon J.
  • Klein, Daniel B.

Barcelona commuters receive a monthly highway bill, without ever having stopped at a tollbooth. Cars on the Autostrada, which connects Milan, Florence, Rome and Naples, whiz past roadside electronic readers that automatically deduct credit from prepaid smartcards which are similar to the copycards familiar to library users. Electronic toll collection is now used on the Esterel-Cote d'Azur; two toll-ring systems in Norway; the Dallas North Tollway; the Oklahoma Turnpikes; and two facilities in New Orleans. Reliability and accuracy rates run as high as 99.9 per cent. Unless there is successful labour resistance, by the year 2000 electronic toll collection will be operating on every major toll facility in the United States. Stopping at tollbooths will be obsolete for all but the infrequent traveller. The advance in technology is accompanied by a shift in policy. The franchising of highway services is now under way: California has four projects in progress; Virginia, one project; and planning is in hand in many other states. Furthermore, the Intermodal Surface Transportation Efficiency Act of 1991 will bring a tide of new projects, as it permits the commingling of federal and private funds. Different approaches to franchising have been used. This article investigates the alternatives and proposes a plan for highway franchising.

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Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt79z9x6fs.

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Date of creation: 01 May 1993
Handle: RePEc:cdl:uctcwp:qt79z9x6fs
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  1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
  2. Demsetz, Harold, 1971. "On the Regulation of Industry: A Reply," Journal of Political Economy, University of Chicago Press, vol. 79(2), pages 356-363, March-Apr.
  3. Walter Y. Oi, 1971. "A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly," The Quarterly Journal of Economics, Oxford University Press, vol. 85(1), pages 77-96.
  4. Thomas W. Hazlett, 1986. "Competition Vs. Franchise Monopoly In Cable Television," Contemporary Economic Policy, Western Economic Association International, vol. 4(2), pages 80-97, 04.
  5. Klein, Daniel B, 1990. "The Voluntary Provision of Public Goods? The Turnpike Companies of Early America," Economic Inquiry, Western Economic Association International, vol. 28(4), pages 788-812, October.
  6. Zupan, Mark A, 1989. "The Efficacy of Franchise Bidding Schemes in the Case of Cable Television: Some Systematic Evidence," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 401-456, October.
  7. Victor P. Goldberg, 1976. "Regulation and Administered Contracts," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 426-448, Autumn.
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