Economics of a Bottleneck
This paper is the first in a series of papers which examine the economics of congestable facilities with peak-load demand, provides a thorough analysis of the simplest bottleneck model: A fixed number of individuals, one per car, must travel from home to work. Between home and work is a bottleneck of given capacity. The costs of travel include queuing time and schedule delay. Equilibrium with no toll, a coarse toll, and a fine toll are compared and optimal bottleneck capacity computed for each case.
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