Optimal pricing of endogenous congestion: a disaggregated approach
We design and estimate a game theoretic congestion pricing mechanism in which the regulator aims at reducing traffic congestion by discriminating travelers according to their willingness to travel on the network. He knows that travelers learn about their environment, that their preferences are affected by the reputation of each available mode of transportation and that congestion can be seen as a Bayesian game in which travelers impose externalities on each other. We derive individual optimal fares depending on each traveler's valuation of transportation. Welfare simulation results based on a French household survey show that the travelers' perception of the mode of transportation and income sensitivity differences are important determinants of welfare improvement.
|Date of creation:||Apr 2007|
|Date of revision:||17 Jul 2009|
|Contact details of provider:|| Postal: |
Web page: http://www.umbc.edu/economics
More information through EDIRC
|Order Information:|| Email: |
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.:
- Cremer, Jacques, 2000. "Network externalities and universal service obligation in the internet," European Economic Review, Elsevier, vol. 44(4-6), pages 1021-1031, May.
- Small, Kenneth A. & Yan, Jia, 2001.
"The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation,"
Journal of Urban Economics,
Elsevier, vol. 49(2), pages 310-336, March.
- Small, Kenneth A. & Yan, Jia, 2001. "The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation," University of California Transportation Center, Working Papers qt9569k1sz, University of California Transportation Center.
- Small, K.A. & Yan, J., 1999. "The Value of "Value Princing" of Roads: Second-Best Pricing and Product Differentiation," Papers 99-00-02, California Irvine - School of Social Sciences.
- Small, Kenneth & Yan, Jia, 2000. "The Value of "Value Pricing" of Roads: Second-Best Pricing and Product Differentiation," Discussion Papers dp-00-08, Resources For the Future.
- Roger B. Myerson, 1977.
"Incentive Compatability and the Bargaining Problem,"
284, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
- Viauroux, Christelle, 2007. "Structural estimation of congestion costs," European Economic Review, Elsevier, vol. 51(1), pages 1-25, January.
- Small, Kenneth A. & Gomez-Ibanez, Jose A., 1999.
Handbook of Regional and Urban Economics,
in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 46, pages 1937-1999
- Richard Arnott & Andre de Palma & Robin Lindsey, 1995.
"Recent Developments in the Bottleneck Model,"
Boston College Working Papers in Economics
305., Boston College Department of Economics.
- Parry, Ian & Small, Kenneth, 2002.
"Does Britain or the United States Have the Right Gasoline Tax?,"
dp-02-12-, Resources For the Future.
- Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September.
- Richard Arnott & Andre de Palma & Robin Lindsey, 1993. "The Welfare Effects Of Congestion Tolls With Heterogeneous Commuters," Boston College Working Papers in Economics 231, Boston College Department of Economics.
- Cremer, Jacques & Hariton, Cyril, 1999. "The Pricing of Critical Applications in the Internet," Journal of the Japanese and International Economies, Elsevier, vol. 13(4), pages 281-310, December.
- Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-61, May.
When requesting a correction, please mention this item's handle: RePEc:umb:econwp:09107. 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: (Christelle Viauroux)
If references are entirely missing, you can add them using this form.