Public Transit Capacity and Users Choice: AnExperiment on Downs-Thomson Paradox
We study the Downs-Thomson paradox, a situation where an additional road capacitycan cause an overall increase in transport generalized cost and therefore a decrease in welfarefor transport users. To this end, we build an experiment based on a double market-entrygame (DMEG) where users have to choose between road and public transit after that the op-erator has choosen public transit capacity. The optimal strategy for operator is to minimizecapacity, and the equilibrium for users depend on the endogeneous public transit capacitycompared to exogeneous road capacity. The most important result is that we observe theDowns-Thomson paradox empirically in the laboratory: An increase in road capacity causesshift from road to rail and, at the end, increases total travel costs. But the contrary isnot true: A decrease in road capacity does not cause lower total travel costs, which is incontradiction with our theoretical model. Results also show that the capacity chosen byoperator di¤ers from Nash prediction, levels being signi cantly higher than those predictedby our model. Moreover, users coordinate remarkably well on Nash equilibrium entry ratewhile capacity has been chosen by operator.
|Date of creation:||10 Jun 2009|
|Date of revision:|
|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00405501/en/|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/ |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andersson, Ola & Holm, Håkan J., 2010.
"Endogenous communication and tacit coordination in market entry games: An explorative experimental study,"
International Journal of Industrial Organization,
Elsevier, vol. 28(5), pages 477-495, September.
- Andersson, Ola & Carlsson, Hans & Holm, Håkan, 2006. "Endogenous Communication and Tacit Coordination in Market Entry Games - An explorative experimental study," Working Papers 2006:12, Lund University, Department of Economics.
- Selten, R. & Chmura, T. & Pitz, T. & Kube, S. & Schreckenberg, M., 2007. "Commuters route choice behaviour," Games and Economic Behavior, Elsevier, vol. 58(2), pages 394-406, February.
- Gary-Bobo, Robert J., 1990.
"On the existence of equilibrium points in a class of asymmetric market entry games,"
Games and Economic Behavior,
Elsevier, vol. 2(3), pages 239-246, September.
- GARY-BOBO, Robert J., . "On the existence of equilibrium points in a class of asymmetric market entry games," CORE Discussion Papers RP -905, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Arnott, R. & De Palma, A. & Lindsey, R., 1992. "Properties of Dynamic Traffic Equilibrium Involving Bottlenecks, Including A Paradox and Metering," Papers 9201, Universite Libre de Bruxelles - C.E.M.E..
- Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982.
"Rational cooperation in the finitely repeated prisoners' dilemma,"
Journal of Economic Theory,
Elsevier, vol. 27(2), pages 245-252, August.
- David Kreps & Paul Milgrom & John Roberts & Bob Wilson, 2010. "Rational Cooperation in the Finitely Repeated Prisoners' Dilemma," Levine's Working Paper Archive 239, David K. Levine.
- Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
- Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon, 2008. "Reciprocity in Ultimatum and Dictator Games: An Introduction," Handbook of Experimental Economics Results, Elsevier.
- John Duffy & Ed Hopkins, 2010.
"Learning, Information and Sorting in Market Entry Games: Theory and Evidence,"
Levine's Working Paper Archive
506439000000000355, David K. Levine.
- Duffy, John & Hopkins, Ed, 2005. "Learning, information, and sorting in market entry games: theory and evidence," Games and Economic Behavior, Elsevier, vol. 51(1), pages 31-62, April.
- John Duffy & Ed Hopkins, 2004. "Learning, Information and Sorting in Market Entry Games: Theory and Evidence," ESE Discussion Papers 78, Edinburgh School of Economics, University of Edinburgh.
- Erev, Ido & Rapoport, Amnon, 1998. "Coordination, "Magic," and Reinforcement Learning in a Market Entry Game," Games and Economic Behavior, Elsevier, vol. 23(2), pages 146-175, May.
- Dan Lovallo & Colin Camerer, 1999. "Overconfidence and Excess Entry: An Experimental Approach," American Economic Review, American Economic Association, vol. 89(1), pages 306-318, March.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Kene Boun My & Laurent Denant-Boèmont & Frédéric Koessler & Marc Willinger & Anthony Ziegelmeyer, 2006.
"Road Traffic Congestion and Public Information: An Experimental Investigation,"
Papers on Strategic Interaction
2006-20, Max Planck Institute of Economics, Strategic Interaction Group.
- Anthony Ziegelmeyer & Frédéric Koessler & Kene Boun My & Laurent Denant-Boèmont, 2008. "Road Traffic Congestion and Public Information: An Experimental Investigation," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 42(1), pages 43-82, January.
- Anthony Ziegelmeyer & Frédéric Koessler & Kene Boun My & Laurent Denant-Boèmont, 2007. "Road Traffic Congestion and Public Information: An Experimental Investigation," THEMA Working Papers 2007-05, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:halshs-00405501. 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: (CCSD)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.