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Congestion in a city with a central bottleneck

Author

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  • Mogens Fosgerau

    () (DTU - Technical University of Denmark [Lyngby], Centre for Transport Studies - Centre for Transport Studies, ENS Cachan - École normale supérieure - Cachan)

  • André De Palma

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, ENS Cachan - École normale supérieure - Cachan)

Abstract

We consider dynamic congestion in an urban setting where trip origins are spatially distributed. All travelers must pass through a downtown bottleneck in order to reach their destination in the CBD. Each traveler chooses departure time to maximize general concave scheduling utility. We find that, at equilibrium, travelers sort according to their distance to the destination; the queue is always unimodal regardless of the spatial distribution of trip origins. We construct a welfare maximizing tolling regime, which eliminates congestion. All travelers located beyond a critical distance from the CBD gain from tolling, even when toll revenues are not redistributed, while nearby travelers lose. We discuss our results in the context of acceptability of tolling policies.

Suggested Citation

  • Mogens Fosgerau & André De Palma, 2012. "Congestion in a city with a central bottleneck," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00783803, HAL.
  • Handle: RePEc:hal:cesptp:hal-00783803 DOI: 10.1016/j.jue.2011.12.002 Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00783803
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    References listed on IDEAS

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    1. repec:wly:iecrev:v:58:y:2017:i::p:585-615 is not listed on IDEAS
    2. Mogens Fosgerau & Kenneth Small, 2017. "Endogenous Scheduling Preferences And Congestion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58, pages 585-615, May.
    3. Mun, Se-il, 1999. "Peak-Load Pricing of a Bottleneck with Traffic Jam," Journal of Urban Economics, Elsevier, vol. 46(3), pages 323-349, November.
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    5. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1999. "Information and time-of-usage decisions in the bottleneck model with stochastic capacity and demand," European Economic Review, Elsevier, vol. 43(3), pages 525-548, March.
    6. Tseng, Yin-Yen & Verhoef, Erik T., 2008. "Value of time by time of day: A stated-preference study," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 607-618, August.
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    8. Richard Arnott & Andre de Palma & Robin Lindsey, 1993. "The Welfare Effects Of Congestion Tolls With Heterogeneous Commuters," Boston College Working Papers in Economics 231, Boston College Department of Economics.
    9. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    10. Daganzo, Carlos F., 2007. "Urban gridlock: Macroscopic modeling and mitigation approaches," Transportation Research Part B: Methodological, Elsevier, vol. 41(1), pages 49-62, January.
    11. Arnott, Richard & DePalma, Elijah, 2011. "The corridor problem: Preliminary results on the no-toll equilibrium," Transportation Research Part B: Methodological, Elsevier, vol. 45(5), pages 743-768, June.
    12. van den Berg, Vincent & Verhoef, Erik T., 2011. "Winning or losing from dynamic bottleneck congestion pricing?: The distributional effects of road pricing with heterogeneity in values of time and schedule delay," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 983-992, August.
    13. Geroliminis, Nikolas & Daganzo, Carlos F., 2008. "Existence of urban-scale macroscopic fundamental diagrams: Some experimental findings," Transportation Research Part B: Methodological, Elsevier, vol. 42(9), pages 759-770, November.
    14. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    15. Nikolas Geroliminis & David Levinson, 2008. "Cordon pricing consistent with the physics of overcrowding," Working Papers 000038, University of Minnesota: Nexus Research Group.
    16. de Palma, André & Fosgerau, Mogens, 2013. "Random queues and risk averse users," European Journal of Operational Research, Elsevier, vol. 230(2), pages 313-320.
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    Citations

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    Cited by:

    1. David, Quentin & Foucart, Renaud, 2014. "Modal choice and optimal congestion," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 12-20.
    2. Sergejs Gubins & Erik T. Verhoef, 2012. "Dynamic Congestion and Urban Equilibrium," Tinbergen Institute Discussion Papers 12-137/VIII, Tinbergen Institute.
    3. Fosgerau, Mogens, 2015. "Congestion in the bathtub," Economics of Transportation, Elsevier, vol. 4(4), pages 241-255.
    4. Mogens Fosgerau & André De Palma & Anders Karlstrom & Kenneth A. Small, 2012. "Trip timing and scheduling preferences," Working Papers hal-00742267, HAL.
    5. repec:eee:transb:v:104:y:2017:i:c:p:215-237 is not listed on IDEAS
    6. Gubins, Sergejs & Verhoef, Erik T., 2014. "Dynamic bottleneck congestion and residential land use in the monocentric city," Journal of Urban Economics, Elsevier, vol. 80(C), pages 51-61.
    7. Fosgerau, Mogens & Lindsey, Robin, 2013. "Trip-timing decisions with traffic incidents," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 764-782.
    8. Knockaert, Jasper & Verhoef, Erik T. & Rouwendal, Jan, 2016. "Bottleneck congestion: Differentiating the coarse charge," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 59-73.
    9. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    10. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    11. Brueckner, Jan K., 2014. "Cordon tolling in a city with congested bridges," Economics of Transportation, Elsevier, vol. 3(4), pages 235-242.
    12. Börjesson, Maria & Kristoffersson, Ida, 2012. "Estimating welfare effects of congestion charges in real world settings," Working papers in Transport Economics 2012:13, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    13. repec:eee:transb:v:101:y:2017:i:c:p:306-334 is not listed on IDEAS

    More about this item

    Keywords

    Dynamic model; Toll policy; Spatial differentiation; Acceptability;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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