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Endogenous Scheduling Preferences and Congestion

Author

Listed:
  • Mogens Fosgerau

    (Technical University of Denmark and Centre for Transport Studies, Sweden)

  • Kenneth Small

    (Department of Economics, University of California-Irvine)

Abstract

We seek to better understand the scheduling of activities in time through a dynamic model of commuting with congestion, in which workers care solely about leisure and consumption. Implicit preferences for the timing of the commute form endogenously due to concave preferences and temporal agglomeration economies. Equilibrium exists uniquely and is indistinguishable from that of a generalized version of the classical Vickrey bottleneck model, based on exogenous trip-timing preferences; but optimal policies differ: the Vickrey model will under-predict the benefits of congestion pricing, and such pricing may make people better off even without considering the use of revenues.

Suggested Citation

  • Mogens Fosgerau & Kenneth Small, 2013. "Endogenous Scheduling Preferences and Congestion," Working Papers 131403, University of California-Irvine, Department of Economics, revised May 2014.
    • Handle: RePEc:irv:wpaper:131403
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Peer, Stefanie & Verhoef, Erik T., 2013. "Equilibrium at a bottleneck when long-run and short-run scheduling preferences diverge," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 12-27.
    2. Fosgerau, Mogens & de Palma, André, 2012. "Congestion in a city with a central bottleneck," Journal of Urban Economics, Elsevier, vol. 71(3), pages 269-277.
    3. Palma, André de & Lindsey, Robin & Picard, Nathalie, 2015. "Trip-timing decisions and congestion with household scheduling preferences," Economics of Transportation, Elsevier, vol. 4(1), pages 118-131.
    4. Takayama, Yuki & Kuwahara, Masao, 2017. "Bottleneck congestion and residential location of heterogeneous commuters," Journal of Urban Economics, Elsevier, vol. 100(C), pages 65-79.
    5. Abegaz, Dereje & Hjorth, Katrine & Rich, Jeppe, 2017. "Testing the slope model of scheduling preferences on stated preference data," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 409-436.
    6. Engelson, Leonid & Fosgerau, Mogens, 2016. "The cost of travel time variability: Three measures with properties," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 555-564.
    7. Takayama, Yuki, 2015. "Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 830-847.
    8. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    9. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    10. André de Palma & Nathalie Picard & Robin Lindsey, 2021. "Activity and Transportation Decisions within Households," Working Papers of BETA 2021-37, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Maya Eden, 2021. "Time‐Inseparable Labor Productivity and the Workweek," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(3), pages 940-965, July.
    12. Verhoef, Erik T., 2020. "Optimal congestion pricing with diverging long-run and short-run scheduling preferences," Transportation Research Part B: Methodological, Elsevier, vol. 134(C), pages 191-209.
    13. Takayama, Yuki & Kuwahara, Masao, 2016. "Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters," MPRA Paper 68938, University Library of Munich, Germany.
    14. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    15. Owen Bulla & Juan Carlos Muñoz & Hugo Silva, 2019. "The impact of fare-free public transport on travel behavior: evidence," Documentos de Trabajo 531, Instituto de Economia. Pontificia Universidad Católica de Chile..

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    More about this item

    Keywords

    Urban congestion; Agglomeration; Endogenous preferences; scheduling preferences; Bottleneck;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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