This paper analyses the efficiency and distributional impacts of congestion pricing in Vickrey’s (1969) dynamic bottleneck model of congestion, allowing for continuous distributions of values of time and schedule delay. We find that congestion pricing can leave a majority of travellers better off even without returning the toll revenues to them. We also find that the consumer surplus losses or ...

This paper describes the modeling of recurring congestion in a network. It is shown that the standard economic models of marginal cost cannot describe precisely traffic congestion in networks during time-dependent conditions. Following a macroscopic traffic approach, we describe the equilibrium solution for a congested network in the no-toll case. A dynamic model of cordon-based congestion pric...

In earlier work a toll pricing framework for congestion pricing has been developed for both fixed and elastic demand traffic assignment models as an alternative to traditional marginal social cost pricing. Within the framework it is possible to define alternative objectives such as minimizing toll costs, minimizing the number of toll booths, etc. This paper will report the results of recent com...

Various contributions to the recent literature on congestion pricing have demonstrated that when services at a congestible facility are provided by operators with market power, the case in point often being a few airlines jointly using a congested airport, optimal congestion pricing rules deviate from the familiar Pigouvian rule that tolls be equal to the marginal external costs. The reason is ...

Telecommunications industry is a highly competitive one where operators’ strategies usually rely on significantly reducing minute rate in order to acquire more subscribers and thus have higher market share. However, in the last few years, the numbers of customers are noticeably increasing leading to more stress on the network, and higher congestion rate, i.e. worse quality of service (QoS). Bec...

The congestion pricing is an efficient allocation approach to mediate demand and supply of network resources. Different from the previous pricing using Affine Marginal Cost (AMC), we focus on studying the game between network coding and routing flows sharing a single link when users are price anticipating based on an Average Cost Sharing (ACS) pricing mechanism. We characterize the worst-case e...

Congestion costs are emerging as one of the most important challenges faced by metropolitan planners and transport authorities in first world economies. In US these costs were as high as 78 million dollars in 2005 and are growing due to fast increases in travel delays. In order to solve the current and severe levels of congestion the US department of transportation have recently started a progr...

This paper develops a spatial general equilibrium model that accommodates both congestion and agglomeration externalities, while firms’ and households’ land-use decisions are endogenous across continuous space. Focusing on the interaction between externalities and land use patterns, we examine the efficiencies of first-best policies and second-best pricing and placebased strategies using simula...

In this paper, we take a political economy approach to study the introduction of road tolls, using a simple majority voting model. Charging users for external congestion costs may seem an obvious reform to an economist, but successful introduction of road pricing is quite uncommon. Moreover, in cases were congestion pricing has been implemented (e.g., London and Stockholm), its introduction was...