Micro-foundations of Congestion and Pricing: A Game Theory Perspective
This paper develops congestion theory and congestion pricing theory from its microfoundations, the interaction of two or more vehicles. Using game theory, with a two-player game it is shown that the emergence of congestion depends on the players-relative valuations of early arrival, late arrival, and journey delay. Congestion pricing can be used as a cooperation mechanism to minimize total costs (if returned to the players). The analysis is then extended to the case of the three-player game, which illustrates congestion as a negative externality imposed on players who do not themselves contribute to it.
|Date of creation:||2005|
|Date of revision:|
|Publication status:||Published in Transportation Research part A Volume 39, Issues 7-9 , August-November 2005, Pages 691-704. [|
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