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Inside the Queue

Author

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  • Erik T. Verhoef

    (Vrije Universiteit Amsterdam)

Abstract

This paper develops a continuous-time -continuous-place economic model of road trafficcongestion with a bottleneck, based on car-following theory. The model integrates twoarchetype congestion technologies used in the economics literature: 'static flow congestion',originating in the works of Pigou, and 'dynamic bottleneck congestion', pioneered byVickrey. Because a closed-form analytical solution of the formal model does not exist, itsbehaviour is explored using a simulation model. In a setting with endogenous departure timechoice and with a bottleneck along the route, it is shown that 'hypercongestion' can arise as adynamic -transitional and local- equilibrium phenomenon. Also dynamic toll schedules areexplored. It is found that a toll rule based on an intuitive dynamic and space-varyinggeneralization of the standard Pigouvian tax rule can hardly be improved upon. A naiveapplication of a toll schedule based on Vickrey 's bottleneck model, in contrast, appears toperform much worse and actually even reduces welfare in the numerical model.

Suggested Citation

  • Erik T. Verhoef, 2002. "Inside the Queue," Tinbergen Institute Discussion Papers 02-062/3, Tinbergen Institute, revised 27 May 2003.
    • Handle: RePEc:tin:wpaper:20020062
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    Citations

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    Cited by:

    1. Arnott, Richard & Inci, Eren, 2010. "The stability of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 68(3), pages 260-276, November.
    2. Fosgerau, Mogens, 2015. "Congestion in the bathtub," Economics of Transportation, Elsevier, vol. 4(4), pages 241-255.
    3. Frascaria, Dario & Olver, Neil & Verhoef, Erik, 2020. "Emergent hypercongestion in Vickrey bottleneck networks," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 523-538.
    4. Kaddoura, Ihab & Nagel, Kai, 2019. "Congestion pricing in a real-world oriented agent-based simulation context," Research in Transportation Economics, Elsevier, vol. 74(C), pages 40-51.
    5. O'Dea, William P., 2006. "An Economic Analysis of Construction Bottlenecks," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208045, Transportation Research Forum.
    6. Bao, Yue & Verhoef, Erik T. & Koster, Paul, 2021. "Leaving the tub: The nature and dynamics of hypercongestion in a bathtub model with a restricted downstream exit," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    7. Verhoef, Erik T., 2005. "Speed-flow relations and cost functions for congested traffic: Theory and empirical analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 792-812.
    8. Saenz-de-Miera, Oscar & Rosselló, Jaume, 2012. "The responsibility of tourism in traffic congestion and hyper-congestion: A case study from Mallorca, Spain," Tourism Management, Elsevier, vol. 33(2), pages 466-479.
    9. Jesper Breinbjerg & Trine Tornøe Platz & Lars Peter Østerdal, 2024. "Equilibrium arrivals to a last-come first-served preemptive-resume queue," Annals of Operations Research, Springer, vol. 336(3), pages 1551-1572, May.
    10. Gonzales, Eric J., 2015. "Coordinated pricing for cars and transit in cities with hypercongestion," Economics of Transportation, Elsevier, vol. 4(1), pages 64-81.
    11. Arnott, Richard, 2013. "A bathtub model of downtown traffic congestion," Journal of Urban Economics, Elsevier, vol. 76(C), pages 110-121.
    12. Ravner, Liron, 2014. "Equilibrium arrival times to a queue with order penalties," European Journal of Operational Research, Elsevier, vol. 239(2), pages 456-468.
    13. Breinbjerg, Jesper & Østerdal, Lars Peter, 2017. "Equilibrium Arrival Times to Queues: The Case of Last-Come First-Serve Preemptive-Resume," Discussion Papers on Economics 3/2017, University of Southern Denmark, Department of Economics.
    14. Antonio Russo & Martin W. Adler & Federica Liberini & Jos N. van Ommeren, 2019. "Welfare Losses of Road Congestion," CESifo Working Paper Series 7693, CESifo.

    More about this item

    Keywords

    congestion; road pricing; networks;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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